Gap increases its minimum wage to $10 an hour

The Gap is hoping to close the economic gap by raising its hourly pay wage.

The clothing chain says it will boost its minimum hourly wage for its U.S. employees to $10 in 2015. The minimum wage will be raised this year to $9 an hour.

Gap Incorporated owns the Gap, Banana Republic and Old Navy. Gap said the increases will affect about 65-thousand store employees.

President Obama praised the news in a statement released Wednesday night. 

"In my State of the Union Address, I asked more businesses to do what they can to raise their employees' wages. Today, I applaud Gap, Inc. for announcing that they intend to raise wages for their employees beginning this year - a decision that will benefit about 65,000 workers in the U.S.," he said.