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Avery Schumer

Wage Pressures And Holiday Comps In The Retail Sector

As retailers enter the peak of the holiday shopping season, one theme running through the sector is wage pressure. 

Target Corporation TGT 0.42% announced in late September that it would increase wages to $15 an hour by 2020, the first discount low-wage chain to embrace a new normal, according to CNBC.

Target's logic for the increase: it helps attract talent to the highly competitive retail sector. The minimum wage mandated by the federal government is $7.25 per hour, although individual states have the leeway to set their own minimum.  Source

There is a breakout of the rising channel, but due to stochastics some consolidation is more likely than a downside. 

$TGT, Target Corporation / D