Wal-Mart’s Urban Problem: NY City

New York is the largest city in the United States. It's home to 8.3 million people – 27,147 persons per square mile – and zero Wal-Mart stores.

Much to the chagrin of Wal-Mart and its former CEO Lee Scott, Wal-Mart has had no luck in New York City. Masters of rural and suburban growth, Wal-Mart has never been able to circumvent the city's strong labor presence, activist population, and restrictive zoning laws. In 2004, Wal-Mart tried to open its first store in Rego Park, Queens and the move was met with opposition from a coalition of politicians, union organizers and community members. [New York Magazine, 8/8/05] Similarly, residents denied Wal-Mart when it attempted to open a store in Staten Island in 2005. [New York Times, 8/22/05]

However, as the economy has slid into recession, rumors have resurfaced that Wal-Mart is intent on making another try at the city. According to the New York Post, Wal-Mart has been looking for space in Union Square, Chelsea, and along Sixth Avenue. Although Wal-Mart passed on Union Square location, company spokesman Steven Restivo says Wal-Mart is "still interested" in opening a store in New York City. [New York Post, 3/5/09]

New Yorkers should not relent to Wal-Mart without the assurance provided by the Employee Free Choice Act. Despite what the retailer may say, the company's health plan has not improved; its wages are still low. Employee Free Choice would provide New York workers a channel to improve their Wal-Mart jobs.

• Resistance in Brooklyn. In 2006 and 2007, residents and other interested parties wrote to the Brooklyn Paper, Brooklyn's main local publication, expressing diverse views on the speculation that Wal-Mart might be eyeing a location in the area. "Wal-Mart has been eyeing a Downtown site for at least two years, including the Albee Square location. The discount chain has been trying to open a store in New York City, but has met strong opposition from organized labor and (less-organized) environmentalists." [The Brooklyn Paper, 12/23/06]
• Lee Scott gives up on New York City. In 2007, Lee Scott, who once declared, "We will be in New York," announced that Wal-Mart was giving up its attempts to build a store in New York. He said, "I don't care if we are ever here...I don't think it's worth the effort." Later on, Wal-Mart's public relations personnel clarified his position and said he was talking about Manhattan rather than the entire New York City area. [New York Magazine 8/8/05]
• Wal-Mart passes on Manhattan location. Several years later, Wal-Mart again followed Lee Scott's advice and passed on a proposal by Related Companies for a two-level store of about 57,000 feet in Union Square where Virgin Megastores and Circuit City are closing, sources said. [New York Post, 3/5/09]
• NYC residents smell a labor rat. Why did Wal-Mart pass on this latest chance to move into New York City after years of frustration? Maybe it is the strong labor union presence in the city. "If there ever was a part of the country where people wouldn't tolerate [Wal-Mart,] it would be a city like New York where there's a strong labor movement," says Kate Bronfenbrenner, a labor economist at Cornell University in Ithaca, N.Y. "People there fight back when they smell a labor rat." [Christian Science Monitor, 2/24/05]
• Does Wal-Mart even fit in NYC? Outside of labor unions, New Yorkers are notoriously trendy and activist oriented. New York is widely known as one of the trendiest cities on Earth, and Wal-Mart, known for cheap goods, has failed to appeal to the more innovative, fashion-conscious urban set. Though Wal-Mart set up a design studio in New York to be more in-touch with the urban trends, Wal-Mart cannot seem to appeal to urban-dwellers. Especially in Manhattan, the city's wealthiest borough, expensive luxury items are commonplace and some critics argue that Wal-Mart would struggle to meet urban consumers' shifting tastes, compared with smaller boutique shops. [New York Times, 5/4/06]
• Already enough places to shop in the city? New Yorkers are proud of their city and believe Wal-Mart will make things worse. Many local City Council members are aware of the harmful effects of Wal-Mart on local communities and are determined to keep them out. "We don't care if they're never here," said Ed Ott, executive director of the New York City Central Labor Council. "We don't miss them. We have great supermarkets and great retail outlets in New York. We don't need Wal-Mart." [New York Times, 3/28/07]
• A rallying cry from a local activist. The community voices Wal-Mart faces in opposition to their plans are stronger in New York, than elsewhere. A recent interview in New York's Gothamist, with Reverend Billy, who is on a "stop-shopping" crusade, reveals, "Wal-Mart tries to come here-well it's a good thing for New Yorkers because we're waking up in a city that's been asleep and soon we'll all be awake and Bentonville will never know what hit it." [Gothamist, 3/5/09]
  

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