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The Ever Increasing Minimum Wage

Target College Shopping List
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Have you ever wished there was one store that had everything you needed to buy? Running errands is a tedious task; one that often requires multiple stops at various stores. I remember making my college shopping list that included everything I needed to buy before I went back to school. Thankfully with the help of my amazing mom and a quick Target run, I was able to get everything on my list in ONE PLACE! Target has everything a girl could need; from makeup to shoes to dorm decorations galore. I always wish that there was a Target closer to Saint Michael’s College, quickly reminding myself that it is probably a blessing in disguise for my wallet.
            This week I came across an article that really grabbed my attention. The author describes various challenges that Target is currently facing in the retail industry. With holiday season approaching, retail stores need employees more than ever. It is a challenging process to not only recruit hard working employees, but it is even more difficult to retain them. Employee turnover is a huge obstacle that managers must deal with, as employees often leave companies for various reasons. In order to combat this reoccurring issue, Target announced that they will raise their minimum wage base pay to $11 an hour next month. Currently in the United States Massachusetts and Washington are the ONLY states that have a minimum wage of $11 an hour. From a customer’s perspective this may not seem like a big deal; but it will affect thousands of Target’s employees and the seasonal workers they wish to hire in the upcoming months. Target’s decision to offer higher pay to employees demonstrates their commitment as a brand to their employees, and is a way to set them apart from their competitors.
            According to the New York Times article titled, Target Raises Base Pay to $11 an Hour Heading Into Holiday,“In recent years, Walmart has gotten the jump on Target by being the first to announce a series of base pay hikes”. This illustrates that Target is trying to differentiate their brand from competitors in the industry such as Amazon and Walmart. As we discussed in class, millenials and generation Z are extremely sharp with technology and LOVE online shopping. The article states, “Target, like many retailers, is struggling to adapt to e-commerce and pricing pressures”. In order to stay relevant as a brand in our ever-changing society, Target MUST develop new and effective marketing strategies in order to recruit employees. Employees are essential in any business, and higher pay is definitely a great incentive to offer to prospective employees.

            I think this is a smart move for Target 
Minimum Wage Increase Political Cartoon
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as a brand. Not only will it show the company’s commitment to their employees; it will give the company a competitive edge nationwide. However, it is important to see both sides to marketing decisions. Due to this wage increase, costs will have to be cut in another department. This is displayed in the cartoon shown to the right. Companies may be forced to increase product prices due to increases in minimum wage, or let some workers go. This is a daunting problem that managers must face, and could cause some businesses to shut down in the future. With the ever increasing minimum wage and increases in other business costs, there are 
consequences in taking risks with new marketing strategies. 



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