Costco does this and it has worked, at least it seems, really well for them.
Always maintained an above average hourly salary and benefits offering for retail staff. Their turnover is considerably lower than other big box retail (Walmart around 40%, Costco around 17%).
Not to mention the cost reduction of not having to retrain someone who is only going to quit/get fired in six months.
Source: https://hbr.org/2006/12/the-high-cost-of-low-wages
