Amazon's latest move is creating a new headache for fellow retailers.
Shares of most retailers are down 3 percent to 5 percent on Tuesday, including big names like Ascena, Abercrombie & Fitch and Gap plus smaller retailers like Buckle. This time the headache is from an entirely different line of attack: wages. Amazon's decision to raise the minimum wage for its workers to $15 an hour will create new margin pressures for retailers, most of whom pay far below $15 hourly.
Chuck Grom at Gordon Haskett notes that only Costco, which offers a minimum wage of $14 to $14.50 an hour, comes close to Amazon's move.
Target raised to $12 this year, and Walmart is at $11.