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

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, the $86 billion division of Walmart Inc (NYSE:WMT), introduced a fresh workforce compensation plan, which boosted pay for close to 100,000 frontline associates and provided guidance for longer-term financial futures.