Wal-Mart hits Big Apple pothole
Opposition from critics prompts developer to drop plans for New York City's first Wal-Mart.

Wal-Mart hits Big Apple pothole
Opposition from critics prompts developer to drop plans for New York City's first Wal-Mart.
February 24, 2005: 6:26 AM EST

NEW YORK (CNN/Money) - A major New York real estate developer has dropped plans to include a Wal-Mart in a mall here, a move that would block the first New York City location for the world's largest retailer, according to published reports.

The New York Times reported that Vornado Realty Trust (Research) is dropping plans for the Wal-Mart (Research) in a shopping mall in the city's borough of Queens due to intense opposition from labor unions, neighborhood retailers and city officials concerned about the effect that the store would have on competitors.

A spokeswoman for Wal-Mart told the paper the company was still exploring other potential sites in the city. But the move is a blow to Wal-Mart, whose executives have said New York City was an important new market for the Arkansas-based retailer.

A Vornado spokeswoman declined to comment, except to tell the Times there was never a formal deal between Vornado and Wal-Mart. The paper reported that Vornado had hoped to win approval for the mall before plans to include a Wal-Mart became publicly known.

Wal-Mart stock edged lower Wednesday, while Vornado shares fell 1.3 percent.  

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