Walmart fails to crack New York City

Previously the chain proposed opening stores in the Queens and Staten Island
boroughs of the city, but was again met by opposition.

In 2007, exasperated by the opposition, the company’s then chief executive
appeared to signal that he had abandoned all hope of opening a store in New
York City.

“I don’t care if we are ever here,” Harold Lee Scott Jr said,
adding: “I don’t think it’s worth the effort.”

Since then however Mr Scott has left the company and Walmart has renewed its
efforts.

The latest plan was to open a store in Gateway II, a shopping centre being
built in East New York, a district of Brooklyn.

Building a stand-alone store is particularly difficult as it requires approval
from the City Council and many council members rely on union support.

However opening in a shopping centre is much less troublesome as the mall
already had building approval and the council has no control over who its
tenants are.

The plan led to opponents accusing Walmart of trying to get into New York City “through
the back door”.

But even that has not been simple and it now looks as though the space
earmarked will be occupied by ShopRite, another supermarket chain.

Walmart said the issue was financial and they had been unable to come to a
deal with Related Companies, the group behind the Gateway II project.
Nonetheless, opposition groups claimed a victory.

Stephanie Yazgi, a spokesman for Walmart Free NYC, told the New York Times: “Walmart’s
withdrawal from Gateway II shows that when New Yorkers join arms, even the
world’s richest retailer is no match for them.”

Patrick Purcell, spokesman of the United Food and Commercial Workers Union,
said:”Walmart’s corporate practices create an atmosphere, where they are
able to bottom out prices, where they hurt the community and workers.

“We believe their corporate practices are irresponsible to the point where
they deserve this type of response. They are the only store we’ve ever done
this with.”

However Walmart have not accepted defeat.

“We remain committed to bringing new economic development and shopping
options to New York City, especially in the neighbourhoods that need them
most.”

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