The Warehouse has agreed to pay staff the living wage.
Negotiations have been happening between the company and private sector trade union First Union for four days.
The Warehouse employees with 12 months experience or more will now get $20.50 an hour, which will increase further to $21.15 next August.
First Union spokeswoman Kate Davis said union members are zeroing their focus on large retail companies.
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"Achieving a living wage for The Warehouse workers proves that low prices in retail are completely compatible with paying retail workers enough to live on.
"Those large retail companies that are not yet paying living wages are becoming outliers."
In a statement, The Warehouse chief executive Pejman Okhovat said: "Our 7000 The Warehouse store team members are central to our ongoing success and this deal acknowledges the importance we place on our team's members".
Union members will be able to vote on the agreement in the coming months.
Newshub.
