Amazon's announcement Tuesday that it will raise its minimum wage to $15 an hour will intensify pressure on other companies to lift their pay levels as well. Among the most likely to do so: Amazon's rival retailers and warehouse operators, many of which are facing the prospect of staff shortages as they ramp up for the holiday shopping season.
Suppliers won't get hit as hard as when Toys R Us filed Chapter 11 bankruptcy and then liquidated a few months later, experts say. That's because many suppliers, nervous about Sears not paying their bills, have increasingly tightened their payment terms to protect themselves, according to Michael Cipriani, executive vice president of Rosenthal & Rosenthal, a company that makes cash advances to suppliers based on the goods they sell to merchants. Even his firm has stopped offering insurance to suppliers who want to sell to Sears.