Dive Brief:

• The number of applications to work at Gap Inc. has risen at least 10% over last year since the company announced it would raise its hourly wage to $10 by next year, the company said Monday.

• All Gap Inc. brands have seen an increase in applications, but the effect at its Old Navy stores has been felt most because applications to work there had been falling, the company said. Gap Inc. also includes Banana Republic, the Gap, and Athleta.

• Many applicants are already well trained in retail, coming from other companies that don’t pay as well, according to Lynn Albright, vice president for Old Navy stores. 

Dive Insight:

Early this year when Gap Inc. announced its plan to increase its wage to $10 for all hourly workers, it was in the midst of heated debate in Washington DC and across the country about raising the nationwide minimum to $10.10; some cities and states have already moved to raise their minimum wage or are considering it.

Gap Inc. had said at the time of its decision that most of its workforce was already paid at least $10 an hour, but its policy is clearly attracting new applicants. The company has said it believes paying workers better will help it gather together teams of employees that will help it boost profits, a belief held strongly by some retail experts.