CNN.com: Oakland, CA Bans Superstores
City council bans Wal-Mart style superstores, saying they would threaten smaller stores, cut wages.
SAN FRANCISCO (Reuters) - The city of Oakland, just across the bay from San Francisco, has banned mega-stores like Wal-Mart supercenters from opening there, saying they would threaten smaller stores and depress wages.
The move comes as Wal-Mart Stores Inc., the world's largest retailer, plans an aggressive roll-out of supercenters in California, with 40 such centers set to open throughout the state over the next four years.
Wal-Mart had no specific plan to open a supercenter in Oakland, and a company spokeswoman said the ordinance was a blow to consumer choice.
The Oakland city council on Tuesday banned the opening of any "big box" retailer with more than 10,000 square feet of nontaxable sales, which typically means floor space devoted to selling groceries. Officials said the action was directed specifically at Wal-Mart.
In recent years, Wal-Mart has stepped up growth of its supercenters. Those stores include grocery items and are more than twice as large as its regular discount stores.Critics are increasingly charging these ultra-large stores that offer rock-bottom prices are making it difficult for mom-and-pop stores and even some fairly large retail chains to compete.
"Oakland has a lot of neighborhood stores," said Oakland city council member Jane Brunner, who said the move banning the supercenters was designed to protect those smaller outlets and their employees.
...