By Jenn Hahn, Founder and CEO of J Recruiting Services

The retail talent war is heating up, but the truth is, it’s been this way for the past five years. So, what’s new? The way retailers are leveraging pay as a primary weapon in the fight for top talent. With a tight labor market and fierce competition for skilled employees, major retailers are making bold moves to attract and retain the best candidates. Case in point: Costco and Walmart recently made headlines by announcing pay raises for their leadership teams, reinforcing one simple truth—when it comes to hiring, compensation is king. 

Why Pay Matters More Than Ever  

Money has always mattered, but today, it carries even more weight than it did four years ago. After the pandemic, many professionals—especially in retail—took a step back to reevaluate their careers and priorities. For the first time in years, salary wasn’t at the top of their list. Candidates prioritized flexibility, remote work, and creative benefits like contribution matches and sabbaticals.  

Now, as the dust settles, one thing is clear: cash is king again. With companies rolling out return-to-office policies, candidates realize that flexibility and hybrid options may no longer be guaranteed. Add economic uncertainty, rising costs, and concerns about tuition and household expenses, and financial security becomes a top priority. Today’s job seekers aren’t just looking for a paycheck—they’re looking for the best offer that keeps pace with industry standards. They’re well-informed and selective, and if an opportunity doesn’t offer competitive pay, they won’t make a move. In retail, strong compensation isn’t a perk; it’s a necessity.  

The High Stakes of Competitive Pay  

Higher wages don’t just attract more candidates—they improve engagement and reduce costly turnover. Retailers that prioritize their compensation strategy in 2025 will secure the brightest new talent and retain the top performers they can’t afford to lose.  

Today’s job seekers know their worth and won’t settle. With inflation and the rising cost of living, financial security has become just as critical as it was pre-pandemic. Companies that fail to offer competitive pay will lose their best employees to higher-paying competitors. As recruiters, we see firsthand which organizations are vulnerable—those that pay less—and which are nearly impossible to pull talent from. The best companies aim to be in the latter category, positioning themselves as top employers that attract and retain skilled professionals.  

While headlines focus on layoffs in corporate retail, certain areas of the industry are experiencing a talent shortage. In these key functions, employers must recognize that competitive compensation isn’t optional—it’s mission-critical for success.  

A Shift in Power Dynamics  

Historically, the retail industry has relied on a large, flexible workforce. But since 2020, changing economic conditions have shifted the power dynamic. The pandemic underscored the essential role of retail workers, particularly in stores and distribution centers where remote work was never an option. Many employees in these critical roles are no longer willing to accept low wages for high-demand jobs. With more choices than ever, they’re looking for pay that reflects the realities of today’s labor market.  

Leading the Charge: Costco and Walmart  

Costco has long been known for valuing its employees, and its recent leadership pay increase reinforces that reputation. By offering higher wages, Costco continues to set the standard for retail employers who want to build a loyal, engaged workforce. Employees who feel valued stay longer—a strategy Costco has mastered.  

Walmart has also stepped up, increasing wages for field operations leadership roles. But its approach isn’t just about pay—it’s about investing in internal talent. By raising wages and providing career development opportunities, Walmart is ensuring its best employees remain engaged and committed to their future with the company. The retailer understands that staying competitive means securing top talent, and they’re willing to pay for it.  

The Ripple Effect Across the Industry  

When industry giants like Costco and Walmart raise wages, the rest of the retail sector takes notice. These moves pressure other retailers to follow suit or risk losing talent to higher-paying competitors. When companies announce pay increases in major headlines, it sends a clear message to employees across the industry: expectations are shifting, and better compensation is within reach.  

However, while salary is a significant factor, it’s not the only piece of the puzzle. Bonuses, comprehensive benefits, flexible schedules, and a positive work environment all play crucial roles in attracting and retaining top talent. The best retailers understand that a well-rounded compensation package is key to maintaining a strong workforce.  

What This Means for Hiring Teams  

For recruiters and hiring managers, these pay increases aren’t just a passing trend—they’re a reality that can’t be ignored. To build a successful hiring strategy, companies must understand the competitive landscape. When discussing open roles, hiring teams need a clear understanding of what their company can afford. If your organization once attracted top talent from big-box retailers, does your current compensation still measure up? If not, what adjustments are needed?  

Winning top talent requires alignment on messaging, target audience, and total compensation. Hiring teams must be clear on who they’re hiring, what they can offer, and what internal changes—such as training or expectation shifts—may be necessary if salaries can’t keep up with the market.  

And let’s be honest—money matters. Candidates will ask about compensation, and recruiters need to be prepared to answer with confidence. No one wants to join a company that can’t articulate the financial value of a role. If you can’t sell it, why should they say yes?  

The Bottom Line  

The battle for retail talent isn’t slowing down, and compensation is the frontline strategy. Pay isn’t just a hiring lever—it’s the foundation of a competitive recruitment plan. Companies that adapt will secure and retain top talent. Those that don’t? They’ll struggle to keep up or be forced to lower their hiring expectations.  

Hiring teams need to ask themselves: Are we paying competitively? Are we prepared to discuss compensation openly? Are we offering more than just a paycheck? Because in today’s market, candidates are making calculated career moves. The real question isn’t whether they have options—it’s whether your company is one of them. 

About author

J Recruiting Services (https://jrecruitingservices.com/), a boutique recruiting firm founded by Jenn Hahn in 2017, partners with leading retail brands across the U.S. to deliver top-tier talent. A self-proclaimed “retail nerd,” Jenn launched the firm to serve the industry she knows and loves—retail—by offering tailored recruiting solutions that align with each client’s unique needs.

As CEO, Jenn leads her team in placing top talent across store operations, warehouse leadership, and executive roles for major retail brands nationwide. Jenn has spent her career revolutionizing how retail brands attract top-tier talent. Her firm specializes in finding, engaging, and placing high-impact candidates, helping retailers thrive even in the toughest hiring climates. Their mission is simple yet powerful: deliver exceptional results and inspire clients and candidates to expect more from external recruiters. At J Recruiting Services, they’re not just recruiters—they’re true partners.