Raise for WalMart workers translates to only 1.1% increase in prices for walmart clients

July 23, 2015

"Even if Walmart were to pass 100 percent of the wage increase on to consumers, the average impact on a Walmart shopper would be quite small: 1.1 percent of prices, well below Walmart's estimated savings to consumers. This works out to $0.46 per shopping trip, or $12.49 per year, for the average consumer who spends approximately $1,187 per year at Walmart. This is the most extreme estimate, as portions of the raise could be absorbed through other mechanisms, including increased productivity or lower profit margins." page 3

 

Jacobs, Ken, Dave Graham Squire and Stephanie Luce (2011) "Living Wage Policies and Big-Box Retail," Center for Labor Research and Education, University of California, Berkley, CA, page 3 http://laborcenter.berkeley.edu/retail/bigbox_livingwage_policies11.pdf

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