Employee turnover is expensive, and training new workers is a deadweight cost. Wal-Mart CEO Doug McMillon finally figured that out and took action, with Jim Cramer applauding the move.
"I know it seemed a little ethereal to worry about morale at Wal-Mart, but McMillon was right to be worried and these wage increases are at the heart of the turnaround," the "Mad Money" host said.
Wal-Mart dropped a bomb on Wall Street in October, when McMillon said the company would need to spend money on e-commerce, supply chain management and wages for employees.
The news sent the stock plummeting 10 percent.
The company made back those gains, and then some, when it reported sharply higher than expected earnings, including a same-store-sales number that was double what Wall Street expected. Wal-Mart's success was driven by strong sales in health, wellness, apparel and home and seasonal goods.
In other words, Wal-Mart is doing well in almost all of the categories that other bricks and mortar retailers have struggled with this season.