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Monday, March 21, 2005

Wal-Mart Meets Its Match

Wal-Mart has hit more obstacles in expanding its "Supercenters" in California, reports the Associated Press:

A handful of lawyers have sued more than 30 cities that approved the 200,000-square-foot combination grocery and department stores, claiming local officials hungry for sales taxes have miscalculated their environmental consequences...

They're delaying the opening of some stores by months or years and slowing Wal-Mart's plan to build up to 40 new supercenters in a state that's one of the company's few major U.S. growth opportunities. The suits also come at a time when the unions representing grocery store workers, primary the United Food and Commercial Workers, and Wal-Mart's competitors are worried about the effects of the discounters in California.


It was just last year that supermarket chains, arguing that they needed to cut benefits in order to better compete with the Wal-Mart behemoth, locked out Southern California union workers, leading to a 4 1/2 month strike.

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