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.

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.

Key Takeaways Sam's Club is raising its entry-level wage to $16 and is increasing the rate at which pay rises with years of service.The membership-based retailer anticipates the average hourly wage for Sam's Club front-line associates will be above $19.

Sam’s Club’s corporate supply chain team plans to merge with the supply chain team of parent company Walmart, according to a memo obtained by Business Insider David Guggina, head of supply chain operations for Walmart, wrote the memo, which was sent to the Sam’s Club supply chain team.

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

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.

Sam’s Club said Tuesday it will raise pay to incentivize workers to stay with the company — and not jump ship to Costco.