Higher sales, happier staff after Walmart pays staff more

Bentonville, Arkansas

A COUPLE of years ago, Walmart, which once built its entire branding around a big yellow smiley face, was creating more than its share of frowns.

Shoppers were fed up. They complained of dirty bathrooms, empty shelves, endless checkout lines and impossible-to-find employees. Only 16 per cent of stores were meeting the group's customer service goals. The dissatisfaction showed up where it counts. Sales at stores open at least a year fell for five straight quarters; the company's revenue fell for the first time in Walmart's 45-year run as a public company in 2015 (currency fluctuations were a big factor, too).

To fix it, executives came up with what, for Walmart, counted as a revolutionary idea. This is, after all, a company famous for squeezing pennies so successfully that labour groups accuse it of depressing wages across the US economy. As an efficient, multinational selling machine, it h…