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.

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