Walmart reported better-than-expected quarterly earnings this morning. According to its CEO, part of why it’s doing so well is because the company raised its minimum wage.
“We are seeing improved associate purchasing in our stores—associates are feeling more engaged,” said Walmart CEO Greg Foran on the call, reports The Street. It seems the wage increase has made workers feel more allegiance to the retailer, if allegiance can be measured by how much Walmart employees spend at Walmart.
McDonald’s said the exact same thing last March after it raised its workers’ minimum wages. (Note how both companies have been known for poor worker conditions for decades, and yet these slight increases led to better results.) So while the fight for a national $15/hour minimum wage rages on, remember that it actually helps businesses too.