Retailer Target is increasing its minimum wage to $10 an hour, following similar moves by other companies and states.

A source familiar with the retailer's plans confirmed Target is increasing its hourly minimum to $10 and is being done to keep in line with similar moves by other retailers.

"Our team is a huge part of what makes Target, Target," Target spokeswoman Molly Snyder said in a statement today. "We pay market competitive rates and regularly benchmark the marketplace to ensure that our compensation and benefits packages will help us to both recruit and retain great talent. However, we typically don't disclose the details of our compensation programs."

Reuters first reported that Target will raise the rate to $10 in May. The company last raised its minimum pay rate in April 2015 to $9 an hour. The federal minimum wage is $7.25 per hour.

Target, based in Minneapolis, Minnesota, has about 341,000 employees at nearly 1,800 stores nationwide.

California and New York moved to increase their state minimum wage over time to $15.

In February, more than 1.2 million Walmart and Sam's Club employees in the U.S. received a raise, providing an average hourly rate of $13.38 to full-time workers. All Walmart hourly workers hired before Jan. 1, 2016 are earning at least $10 an hour. Meanwhile, new workers would continue to start at $9 an hour but will earn at least $10 after undergoing a training program