March 02, 2004

California Says "Stuff-it" to Wal-Mart

USA Today:

Wal-Mart's relentless rollout of new stores has foundered in California like a beached whale. Two years ago, the world's biggest company announced aggressive plans to build 40 of its trademark "supercenters" in this lucrative market of 35 million consumers, the last untapped domestic prize for a global behemoth whose "always low prices" stretch from China to Brazil. But not a single supercenter has opened in California, and Wal-Mart's goal -- a new one every two months -- looks dubious. Nearly everywhere it turns, the Bentonville, Ark., retailer finds itself embroiled in lawsuits, politics and voter hostility toward its profitable blend of groceries and discount merchandise.

On Tuesday, voters in Inglewood, San Marcos and here in Contra Costa County will decide whether to prohibit "big-box" stores epitomized by Wal-Mart supercenters. Los Angeles, San Diego, Salinas and other cities are mulling similar bans. Lawsuits over Wal-Mart are pending in Alameda County, Bakersfield and Turlock.

Across the USA, Wal-Mart faces backlash where it once found welcome mats — often with taxpayer-financed sweeteners to boot. From Lawrence, Kan., to Sequim, Wash.; Milford, Ohio; Manatee County, Fla.; Manor, Pa.; Stoughton, Wis.; Urbana, Ill.; and Florence, S.C., communities are questioning whether Wal-Mart's ultracompetitive business practices — critics call them cutthroat and predatory — are in their best interest.

Posted by Norm M. Wada at March 2, 2004 11:21 PM | TrackBack
Related Categories: Industry - Retail | Quadrant - Social | Theme - 'Wal-Mart'inizing the World'



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