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Wal-Mart Plans to Sneak 15 New Stores Into SoCal, Including Burbank, via Permit Loophole

Categories: Business

wal mart neighborhood.jpg
"No Wal Mart in Burbank" via Facebook
Try as it might, looks like L.A. County can't keep scandalously low Wal-Mart prices out of its strip malls forever.

After almost a decade of resistance from local governments and small businesses throughout California, Wal-Mart has found a loophole in the permitting process: All it has to do is set up shop in buildings vacated by similar bix-box retailers, and it can bypass environmental impact reports and other zoning hurdles.

"It appears what they want to do is not too different from what Great Indoors did and therefore is permitted under the development agreement..."

... Burbank Deputy City Manager Jay Forbes tells the Los Angeles Business Journal today. "We can't take back development rights already granted 10 years ago."

Danny Feingold, communications director for the L.A. Alliance for a New Economy (LAANE), said the same thing in July: He told us that now, using sneaky strategies like "smaller stores and different formats" to get past "size-based regulations," Wal-Mart is "making a really strong push after getting its comeuppance a few years ago."

The Business Journal reveals today that this method will not only grant the company access to kicking-and-screaming Burbank, but an entire new crop of Wal-Mart virgins:

One broker, speaking confidentially, said Wal-Mart is scouting at least 15 potential sites in Southern California and 15 in Northern California. He said Wal-Mart is interested in existing shells, already entitled, and will look at small sizes - not just Wal-Mart's usual mammoth spaces.

The shells Wal-Mart is hoping to hermit-crab include a closed Circuit City in the Northridge Fashion Center and shuttered Great Indoors lots in both Burbank and Irvine, according to the newspaper.

Here's some schooling on the company's plight in SoCal (if multi-billion-dollar empires are even capable of "plight"), from the Weekly's June story on the classic Burbank struggle between common man and corporate giant:

In 2004, Wal-Mart Inc. was dealt a major blow after it announced plans to build 60 superstores throughout California. Lean, green activists in both NorCal and SoCal fought tooth and nail to bar out the chain, often via city zoning regulations.

Among the biggest victors of that movement were the voters of Inglewood, who defeated a big-money-backed referendum that would have allowed Wal-Mart to open a 60-acre retail village in their hood.

But the Great Recession, while devastating for mom-and-pop shops, can be a powerful tool for a beast like Wal-Mart. Harder-hit chains are closing branches, leaving permit-free spaces for Wal-Mart to snatch up. Meanwhile, consumers are desperate for the cheapest prices -- no matter the implications on workers and surrounding stores.

Writes resident Eric Harlacher in a recent letter to the Burbank Leader: "There's nothing less American than a predatory retailer. The math here is obvious, too: one pays lower prices for goods at Walmart but at what cost to American jobs?"

Feingold explained to us in July that Wal-Mart is notoriously anti-union, known for lowering labor standards in the towns it conquers. And such economic devastators would still apply to these smaller, friendlier neighborhood alternatives Wal-Mart is fixing to pitch to L.A. communities as one of their own.

Since we last checked up on the "No Wal Mart in Burbank" movement, its Facebook following has reached almost 650 people. And the activists behind it have charged ahead with a new approach to warding off the Waltons as neighbors:

They're vetting a bill on Governor Jerry Brown's desk that would require Wal-Mart to "include an economic analysis as part of the routine local permitting process."

Another fascinating link on the opposition's Facebook page leads to a Reddit IAMA (a la Magic champion Jon Finkel) with a former employee of a vegetable farm that supplied produce to Wal-Mart. And let's just say, the As to the Qs: Not pretty.

We've contacted the mothership for comment.

[@simone_electra/swilson@laweekly.com]

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15 comments
Adamsranch
Adamsranch

Having a husband out of a job,since July,  after 21 years in the dairy industry, we need this Wal-Martr. we need more jobs than a mom and pop store. Those who wish can still go to the mom and pop stores and be happy for the thousands of jobs being added. These people who are complaining only care about themselves.

LP Simmons
LP Simmons

WAL MART IS STILL TRYING TO PUT A FULL LINE OF GROCERIES IN ALL THE STORES IN LOS ANGELES COUNTY.THERE ARE ONLY FOUR STORES IN THE COUNTY THAT HAVE A FULL LINE OF GROCERIES. LET'S SEE WHAT HAPPENS NEXT YEAR

Mitch B
Mitch B

Walmart's been working on the strategy of putting stores into existig buildings in California since 2008. Now that it's announced its smaller Walmart Market supermarket format it's getting ready to open numerous grocery stores in California. It also put a hybrid supercenter into a vacant big box building in Modesto in 2008. That's the plan in Southern CA also. This blog has been tracking the developments for a few years now:

http://freshneasybuzz.blogspot...

http://freshneasybuzz.blogspot...

Since these stores are small, the supercenter argument shouldn't hold water. But I think the real argument is against Walmart in general. Target has put grocery in dozens of stores in Socal and nobody complains?

DM
DM

In relation to WalMart's retail invasion of SoCal, the Walton Foundation has pledged 15 million to encourage charter schools here.  Why?  As the article points out, WalMart is notoriously anti-union; the big-money backers of charter schools' real agenda is the destruction of teachers' unions and organized labor in general.  Eroding unions ultimately strengthens the WalMart worldview.

Monstergarageone
Monstergarageone

I wish they would find a location in eagle rock.. nothing here!!! A 24 hour supercenter would be great!!!

Fair1
Fair1

http://www.growingproduce.com/...Family business sells vegetables and melons to local Walmart and other stores.  They love Walmart.http://latimesblogs.latimes.co...Grocers say do not have the resources to monitor supplier employment practices

Walmart bought the stores in plain sight. The former owners wanted to sell them directly to Walmart for money.  They needed the cash. If you do not want a Walmart, they can always put a Sam's Club there that will meet all rules and regulations.  Why build a new building when the building left behind meet the exact specifications needed and keeps the area from blight.  650 people in a town of 106,000 is not a revolution as stated in the comment below.  

Fair1
Fair1

http://www.growingproduce.com/... Family grows vegetable and melons for local Walmart and loves it.  He does the same for the markets also.  http://latimesblogs.latimes.co...Grocers do not have the resources to monitor supplier employment practices

If you do not want a Walmart, they could easily put in a Sam's Club in Burbank next to Costco and meet all the rules and regulations. 

Frohman21
Frohman21

While trying to sound nefarious, you completely miss the point.  Walmart going into CLOSED retail spaces that are doing nothing and generating nothing for the cities in which they are located is a good thing.  If you don't like Walmart don't shop there. But 650 people does not a revolution make. 

Laura Velkei
Laura Velkei

oh contrare.  to start a revolution, you only need handful.  650 is well more than a handful.  I will be adding myself to that charge.  As for the closed retail they are replacing, soooo what.  Maybe we could add a giant strip club that sells photos of the stippers to little boys.  At least the strippers would be making a living wage.  NO WALMART.

Guido Serafino
Guido Serafino

Going in to that closed retail space will in turn put local small businesses out of commission once they can't compete.

James Heller
James Heller

That's actually a common misconception. A number of studies have shown that Wal-Mart has very little negative impact on local mom-and-pop businesses.

Laura Velkei
Laura Velkei

Really.  what study would that be james?

BD
BD

Ha! Golly you're cute. You can get a study to show anything depending on how you spin it. Oh I just wanna pinch your widdle misinformed cheeks!

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