Walmart announced that it will raise wages for its Sam's Club employees Tuesday, in an apparent attempt to keep up with Costco in a retail wage race.

Sam’s Club is raising its hourly wages to $16 per hour for 100,000 workers starting in November. The move is part of a recently rolled-out compensation plan that will be implemented before the holiday shopping rush.

Exterior view and signage of a Sam's Club location in San Antonio, Texas, USA, on February 5. Sam's Club is a membership-only warehouse club retail store. The retail store can be found in 45 states within the USA. There are also 45 locations in China and ...

The club chain, owned by Walmart Inc., said store employees’ starting wages in the US will increase to $16 from $15.

The average hourly wage at Walmart-owned Sam's Club has increased by nearly 30% in the past five years and is expected to top $19 with the new plan.

Sam's Club workers with longer tenures to get larger increases in changes slated to take effect in early November.

Walmart-owned Sam's Club said on Tuesday it would raise average hourly wages for nearly 100,000 of its workers, as part of a new employee compensation plan that will come into effect ahead of the holiday season rush.

Sam's Club is increasing wages for its frontline workers in an effort to retain staff. This announcement comes ahead of the busy holiday shopping season.