Walmart Inc. (WMT - Free Report) is on track with its operations amid the coronavirus pandemic and has been seeing increased traffic as customers have been stockpiling. To this end, the company has been focused on catering to the rising demand through additional workforce as well as rewarding workers with special bonuses. Incidentally, the company informed that it intends to offer another special cash bonus, worth more than $390 million, to all its U.S. hourly workers.
The bonus will be paid to hourly workers across stores, clubs, supply chains and offices, drivers, and assistant managers in stores and clubs. Only workers employed as of Jun 5 will be eligible to receive this bonus on Jun 25. The company said that it will pay a bonus of $300 to full-time hourly employees and $150 to part-time hourly as well as temporary workers.
Notably, this takes Walmart’s bonuses to more than $935 million in the year so far. This includes bonuses worth $365 million issued on Apr 2. It also includes an early payout of the first-quarter bonus of $180 million, considering the commitment of Walmart’s employees amid the crisis. Clearly, the company is making concerted efforts to reward its employees and ensure their safety as they cater to the rising demand amid the pandemic.
To this end, the company has executed daily health screens and temperature checks, installed sneeze guards, offered masks and gloves, restricted the number of in-store customers and implemented sanitizing measures, among others. Other retailers like Target (TGT - Free Report) , Kroger (KR - Free Report) and Costco (COST - Free Report) are also seeing a demand spike, thanks to consumers’ stock hoarding tendency.
Meanwhile, Walmart is also undertaking other efforts to cater to the burgeoning demand. The company recently informed that it is unveiling a new service — Express Delivery. Through this, many items from the company’s stores will be delivered to customers in less than two hours. The company took this step to speed up deliveries for customers amid the coronavirus crisis. Notably, customers can order more than 160,000 products from Walmart’s food, consumables and general merchandise categories through Express Delivery.
We expect such efforts to continue aiding the company’s performance. Shares of this Zacks Rank #3 (Hold) company have gained 5% in the past three months compared with the industry’s growth of 5.7%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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