Target, the second-largest retailer in the U.S., will lift its minimum wage to $9 an hour in April.
The move comes just one month after Wal-Mart said it would raise its starting wage to $9 per hour this spring and $10 next year, giving around 500,000 workers a raise.
Though Target said it would not comment on employee wages, Dow Jones reported and Reuters confirmed the bump Wednesday.
The move will be cheered by labor groups who have been pushing the company to offer higher pay. Women's advocacy group UltraViolet recently ran a web campaign that pointed potential customers towards competitors. One banner ad read, "Did you know there's a Walmart near you that pays higher minimum wage than Target?"
Federal minimum wage has been $7.25 per hour since 2009. Democrats have proposed raising it to $10.10, but many Republicans believe it would be detrimental to businesses.