Walmart’s big pay bump for its store managers is paying off, according to U.S. CEO John Furner.
Speaking at the National Retail Federation (NRF) State of Retail & the Consumer 2025, Furner highlighted the company’s efforts to boost engagement and performance across its management ranks.
“What we did last year was make managers feel like owners,” Furner said. “This includes shareholding, which has positively impacted their approach to the company’s profits and losses.”
Furner pointed out a clear shift in manager behavior, noting a “difference” in how they discuss the business, the types of questions they ask, and how they approach the profit and loss statement. This change is partly due to encouraging managers to think of Walmart as if they owned it, he said.
In January, Walmart (WMT+0.79%) raised compensation for its regional store managers, with top performers now earning between $420,000 and $620,000. The pay boost includes higher stock grants and annual bonuses, with the latter reaching 100% of base pay. The retail giant employs more than 400 store managers across the U.S.
Walmart also has made a concerted effort to boost pay and benefits for hourly workers, aiming to reduce turnover and remain competitive in a tight labor market. However, the company has scaled back perks for its office-based staff, including changes to healthcare plans and end of remote work for some corporate employees outside of its headquarters.
While Walmart’s store manager strategy shows promise, the company is bracing for slower growth in 2025. In February, the retailer warned this year may not replicate the record gains seen in 2024, which were largely driven by higher-income shoppers earning over $100,000, and accounted for 75% of the company’s market share growth.
Walmart, America’s largest private employer, is facing challenges as it prepares for President Donald Trump’s tariffs. The company recently doubled down on its earlier stance, asking Chinese suppliers to cover the costs of U.S. tariffs. Other major retailers like Costco and Target have made similar moves. However, despite these efforts to reduce exposure, U.S. consumers may ultimately bear the brunt of the impact.
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