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TJ Maxx parent company will raise workers’ pay to $10 an hour in 2016

The parent company that owns retailers T.J. Maxx, Marshalls and HomeGoods announced on Wednesday a plan to raise their workers’ wages to $9 an hour in June, with an eventual rise to $10 an hour by 2016. The move makes The TJX Companies, Inc. the latest mega-retailer to jump on the competitive wages trend, following an announcement from Wal-Mart just last week.

Since announcing this raise, shares of TJX Cos. increased by 3.3 percent. The uptick is a turnaround for the company, which has shown sluggish sales and released a less-than-favorable outlook on the current quarter and fiscal year.

The company also announced plans to advance their quarterly dividend by 20 percent, the Wall Street Journal reported.

The retailer says competitive wages will help them achieve their goals. “This pay initiative is an important part of our strategies to continue attracting and retaining the best talent in order to deliver a great shopping experience, remain competitive on wages in our U.S. markets, and stay focused on our value mission,” Carol Meyrowitz, TJX’s chief executive, said in a statement released today.

This recent increase continues the movement started by retailers Ikea and Gap that, within the last year, boosted their wages — creating more competition for low pay workers.