A person enters a Walgreens store in San Francisco, California, U.S., on Tuesday, April 13, 2021.
David Paul Morris | Bloomberg | Getty Images
Drugstore chain Walgreens Boots Alliance announced on Tuesday that it will raise its wages for hourly workers in phases, with the goal of reaching $15 per hour by November 2022.
Initial pay hikes will take place in October. The move comes as retailers compete for workers in a tight labor market.
“Investing in and rewarding our team members is not only the right thing to do, it’s highly important to retaining and attracting a talented workforce, and to continuing to serve our critical role in community health care,” said Walgreens CEO Roz Brewer in a press release.
The drugstore chain said it will cost $450 million over the next three years to raise the wages. Walgreens expects it will be able to offset the higher costs in the normal course of its business.
Walgreens has added 25,000 full-time and part-time workers during the course of the pandemic.
Earlier this month, competitor CVS Health raised its minimum wage and took away its education requirements for workers. CVS plans to raise its hourly pay to $15 from $11 by July 2022, with phased increases starting as soon as this month.
Walgreens did not immediately respond to CNBC’s request for comment.