As retailers search for ways to compete in a tight labor market, Target and Walmart have both announced new plans to pay for associates’ college tuition.
Walmart announced it will pay 100% of college tuition and books for associates through its Live Better U (LBU) education program, removing the $1 a day fee starting Aug. 16. This will allow around 1.5 million part-time and full-time Walmart and Sam’s Club associates in the U.S. to earn college degrees or learn trade skills without education debt.
Target said it is launching a Debt-Free Education Assistance Program to more than 340,000 frontline associates, beginning this fall. All part-time and full-time retail associates working in Target stores, distribution centers and headquarters locations in the U.S. will be eligible for debt-free assistance for select undergraduate degrees, certificates, and certifications, as well as free textbooks with no out-of-pocket costs starting on their first day of work at Target.
Target will invest $200 million over the next four years in its program, while Walmart said it is committing to invest nearly $1 billion over the next five years in career-driven training and development.
"Target employs team members at every life stage and helps our team learn, develop and build their skills, whether they're with us for a year or a career,” said Melissa Kremer, chief human resources officer, Target. “A significant number of our hourly team members build their careers at Target, and we know many would like to pursue additional education opportunities. We don't want the cost to be a barrier for anyone, and that's where Target can step in to make education accessible for everyone.”
“We are creating a path of opportunity for our associates to grow their careers at Walmart, so they can continue to build better lives for themselves and their families,” said Lorraine Stomski, senior vice president of learning and leadership at Walmart. “This investment is another way we can support our associates to pursue their passion and purpose while removing the barriers that too often keep adult working learners from obtaining degrees.”