Wal-Mart Stores' latest move will make it a better place to work and shop, CNBC's Jim Cramer said Thursday.
"[Wal-Mart] is taking some serious actions in terms of upgrading the workforce, which has been a primary problem at Wal-Mart," Cramer said on "Squawk on the Street." "I like what [CEO C. Douglas McMillon] is doing. He's doing a big reset. ... This is a gigantic battleship to turn, and maybe this reset sets the table for 2016, where he's cut estimates to the point where they can be beaten."
The nation's largest retailer announced Thursday it will raise wages for 500,000 hourly employees by at least $1.75 above the current federal minimum wage. The retail behemoth also reported adjusted quarterly earnings per share of $1.61, beating Wall Street's estimate of $1.53. It did, however, miss the Street's estimates on revenue, posting $131.57 billion versus the expected $132.36 billion.
Wal-Mart stock was down more than 2 percent in morning trading. (Click here for the latest price.)
Still, Cramer said the wage move was good news for Wal-Mart.
"When you put it all together, it's going to make for a better place to work, and it's going to be a lot more like a Costco," Cramer said of the wage move. "This is going to attract better [workers]. ... Wal-Mart has a reputation for not being a fun place to shop. ... I go to Wal-Mart frequently to see if it has improved. I often find I'm lost in the stores. I'll ask where are the cargo pants, and they'll send me to the dishwashers."