Los Angeles should not try to shut-out Wal-Mart, according to a new report on the impact of Wal-Mart supercenters by the region's economic development agency.
The consulting practice of the Los Angeles County Economic DevelopmentCorporation (LAEDC) was commissioned by Wal-Mart Stores, Inc. to conductan even-handed assessment of the potential impact of its Supercenters onSouthern California. Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego,and Ventura county consumers will have a combined total annual savingsof at least $3.76 billion and there would be 36,400 new jobs: "The City of Los Angeles is a large, growing market,giving Wal-Mart a powerful incentive to expand here. However, if thecity asks too much, or attempts to shut Wal-Mart out altogether, thecompany will serve its City of Los Angeles customers from neighboringcommunities," says the first complete study released by the Los Angeles County Economic DevelopmentCorporation (LAEDC). Wal-Mart appears to be proceeding cautiously in California, with plans to build just 40 Supercenters in the state over the next three to five years. This represents four percent of the 1,000 newSupercenters that will be added nationwide during the same period. If the distribution of existing Supercenters were factored in, the California number would be higher still. By comparison, Texas, which is the nation's second most populous state, already has many Supercenters while California, the most populous state, has none."
Thanks to Chris Steins
FULL STORY: Wal-Mart Supercenters: What's in store for Southern California?
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