Wayfair increases wages to at least $ 15 an hour
- Online furniture retailer Wayfair has raised its minimum wage to $ 15 an hour, a move that will benefit 40% of its employees.
- Wayfair shares rose more than 2% on Wednesday, adding to their 7% rise so far in 2021.
- The company’s shares have skyrocketed over the past year as the pandemic has prompted people squatting at home to turn to home improvement projects.
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Wayfair Inc. has raised its minimum wage for all U.S. employees to at least $ 15 an hour, a move that will benefit more than 40% of its employees.
The online furniture retailer’s inventory has skyrocketed over the past year as stay-at-home orders to slow the spread of the coronavirus have prompted people to turn to home improvement projects to occupy their time.
The pay increase will apply to full-time, part-time and seasonal employees of the company, the company said in a statement on Thursday. Wayfair shares rose more than 2% on Thursday, bringing the company’s year-to-date rally to 7.1%, according to Morningstar data.
The Boston-based company posted strong third quarter results and its shares rose more than 150% last year as people crouched at home during the pandemic and turned to online shopping and home improvement projects. Shares of Home Depot, Lowe’s and Williams-Sonoma also rallied last year.
In November, Wayfair shares fell on news of the Covid-19 vaccine. Meanwhile, DA Davidson analyst Tom Forte has upgraded stocks to buy them from neutrals, saying the stock will have lasting benefits going forward. He said the company now had a “proven ability to generate profitable sales growth” and that it would emerge from the pandemic “with gross margins lastingly higher than they were before the pandemic”.
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During the pandemic, Wayfair implemented employee bonuses and a take-out lunch program for families. “As we move into 2021, we continue to strengthen our unwavering commitment to our team and their families by raising the minimum wage for all hourly employees,” said Managing Director and Co-Chair Niraj Shah.
The federal minimum wage is currently $ 7.25 an hour.