To raise or not to raise wages? (GAP)

http://apnews.excite.com/article/20140220/DAC397M81.html

By ANNE D'INNOCENZIO

NEW YORK (AP) - Gap's decision this week to raise the hourly wages of workers at its stores nationwide puts pressure on other major U.S. retailers to do the same.

Following Gap's announcement that it will set the minimum wage for workers at $9 an hour this year and $10 an hour in 2015, big store chains from Wal-Mart to Sears said Thursday that they will continue to evaluate their wages.


In this Aug. 9, 2009, file photo, a shopper leaves a Gap store in Palo Alto, Calif. The nation’s largest clothing chain, which operates, Gap, Old Navy, Banana Republic and Athleta, said it would raise the wages to $10 by 2015. (AP Photo/Paul Sakuma, File)


But ultimately, industry watchers say whether they follow Gap's move will depend greatly on whether or not they decide that they need to in order to remain competitive.

"I think more people will wait on the sidelines and not take on additional expenses," said Ken Perkins, president of RetailMetrics, a retail research firm. "It's a gamble on Gap's part."

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