The pay hike will impact all hourly store associates in North America effective immediately, the off-price luxury retailer said. The company is also paying hourly store associates an “appreciation” bonus of $500 as part of a larger effort to attract and retain talent amid a tight labour market buoyed by the pandemic.
Saks Off Fifth is currently hiring around 500 seasonal associates across the U.S. and Canada for the holiday season with an expectation that “many” such positions could transition to full-time roles in 2022.
“The past 18 months have been like nothing we have seen before in retail and this increase in base pay is a testament to our associates’ collective commitment and dedication to our business,” said Rob Brooks, president of 05, which operates Saks Off 5th stores. “We are focused on investing in, and attracting the talent we need to drive our business forward.”
As the holiday season approaches, retailers from from Kohl’s to Target have been raising pay and offering more lucrative benefits to attract applicants. Kohl’s is paying sign-on bonuses of up to $400 and Target is indicating some seasonal positions will become permanent. Walmart is promising to pay college tuition for store associates. Nordstrom, which aims to hire 28,600 seasonal and regular employees across the US and Canada and Nordstrom Rack stores, is offering as much as $650 in incentive pay and up to $2500 for supply chain employees.
Canadian holding company Hudson’s Bay Co. owns the 105 Saks Off 5th brick-and-mortar locations, which were spun off from the e-commerce arm in June as part of a $200 million funding raise led by investment firm Insight Partners. The funding valued SaksOff5th.com at approximately $1 billion.
The Saks Fifth Avenue owner’s move comes amid attempts to bolster its outlet stores.