Target to increase its minimum wage to $9/hour in April: Report

(cnbc.com) 03/18/15 = Target will raise its minimum wage to $9 per hour for all workers in April following recent pay hikes from other large retailers, Reuters reported Wednesday, citing a source.

The news comes as UltraViolet, a women's advocacy group, and other interest groups are pressuring the retailer to increase its wages. Last week, Target outlined plans to lay off 1,700 workers and close out another 1,400 open positions as part of a $2 billion cost-savings plan.

Target looks to offer "competitive wages" but does not usually announce its wage policies, spokeswoman Molly Snyder told CNBC.

A Target pay increase would follow retail giant Wal-Mart, which last month said it would hike its minimum wage to $9 per hour in April and $10 per hour for current employees in 2016.

T.J. Maxx and Marshalls owner TJX also said it would increase its minimum wage to $9 per hour in June.

The federal minimum wage currently sits at $7.25 per hour, though some states hold pay floors higher than the federal level.

The Target wage raise, which was reported earlier by Dow Jones, will affect all 1,800 U.S. stores, Reuters said. The company already paid employees more than the U.S. minimum wage of $7.25 an hour, and it was not clear how many employees' checks would be affected.

Target shares closed slightly positive on Wednesday, but moved lower in light extended trading.