Walmart Stores, long criticised for its low wages and employee benefits, said it would spend more than $1 billion to increase pay for half a million US employees this year.

The increase announced by the largest private sector employer in the US will cover about 40 per cent of its US workforce, but falls far short of what some labour groups have been agitating for, said a report in the Gulf Daily News (GDN), our sister publication.

Walmart said yesterday (February 19) its hourly full-time and part-time workers will earn at least $9 an hour, or $1.75 above the current federal minimum wage, starting in April. Current employees will earn at least $10 an hour by February 1 next year.

Labour groups, led by Our Walmart, have been calling for Walmart to pay its workers at least $15 an hour.

Walmart, which has about 1.3 million US workers, has been a target of activists in the contentious debate over proposals to raise the federal minimum wage of $7.25 an hour.

The increase will mainly affect Walmart's lowest-paid workers. The average hourly wage for full-time workers will rise to $13 from $12.85 this year, while the average for part-time workers will rise to $10 from $9.48, Walmart said.

The $1 billion programme includes changes to staff training and scheduling to help employees advance their careers.

The world's largest retailer reported a better-than- expected fourth-quarter profit as shoppers spent more of their savings from lower US petrol prices at the company's stores.

Same-store sales in the US rose 1.5 per cent. Analysts on average had forecast an increase of 0.7 per cent, according to Consensus Metrix.

Walmart, however, cut its sales forecast for the year ending January 2016, citing a strong dollar.

The retailer said it now expected sales to increase one to two per cent, below its previous forecast of two to four per cent.

It also forecast earnings of $4.70-$5.05 per share, below the average analyst estimate of $5.19.

Net profit attributable to Walmart rose 12 per cent to $4.97 billion, or $1.53 per share, for the quarter. Excluding items, Walmart earned $1.58 per share, according to Thomson Reuters.

Total revenue rose 1.4 per cent to $131.57 billion.

Analysts on average had expected earnings of $1.53 per share on revenue of $132.35 billion. - TradeArabia News Service