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Walmart, Target pressured to compensate employees amid high inflation

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Yahoo Finance's Dani Romero reports that workers at big-box retailers like Walmart and Target are calling for higher wages to keep up with rising prices.

Video Transcript

DAVE BRIGGS: Workers at stores like Walmart and Target are feeling the pinch of inflation, as the big box retailers continue to raise prices on everyday necessities. Yahoo Finance's Dani Romero is here with the details. Dani, you spoke to a few Walmart and Target workers. What are you hearing?

DANI ROMERO: Yeah, Dave, it is getting really difficult for some of these workers that work at these big box retailers, like Walmart, to pay for their groceries. I spoke with a cashier person who works at Walmart in Arkansas. And she makes about $12.85 an hour. And she works at least 40 hours a week. So that's full-time.

And yet, she's having a really difficult time paying for groceries. She says, daily, she has to ask herself this question, will this be another night of eating at McDonald's or another fast food chain? She tells me that she makes about $1,700 a month, and that she doesn't have the funds to really spend $400 to $500 bill on a grocery bill.

And so, I asked her if she qualified for any of those federal programs. And she said, she does not. And like you said, Walmart and Target, they are increasing their prices. And so, I asked her if Walmart offers her any coupons or vouchers, especially when it comes to food. And she says that they don't. And so, I reached out to Walmart and asked them in response, and they have yet responded back to us. But it also raises the question that if these retailers continue to increase prices, will that push the consumer into a recession?

And so, I asked a chief international economist at ING, and he says wages are increasing quickly, but they are not at the pace of inflation. And it seems that households are happy to continue to spend, or at least, get prepared to dip into those accumulated savings to make up for that shortfall. But yet again, there's always that risk. And he says that there are resources for consumers to withstand this near-term inflationary shock. Dave.

DAVE BRIGGS: 11 and 1/2 million open jobs in a tight labor market could inch those wages up a bit. Dani Romero, thanks so much. Appreciate it.

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