Walmart Sets its Sights on NYC — For Real This Time

The on-again, off-again attempts by Walmart to infiltrate New York City are officially on again, as the mega-retailer tries to leverage momentum from its recent success in Chicago.

Worn down after six years of fighting off the big box store, and with an economy in shambles, Chicago Mayor Richard Daley gave the green light this summer for Walmart to open at least two additional stores in the city. The new Chi-Town stores will be part of a larger corporate effort to enter a number of major U.S. cities — which have so far largely eschewed Walmart's advances — by building smaller "neighborhood markets." The problem with that, of course, is that when Walmart moves into a neighborhood, local businesses go under, and any net jobs that are created are low-paying ones, further miring residents in the cycle of poverty.

With the Chicago success under its belt, Walmart immediately turned its gaze back to New York City, where the retailer has been vying to open stores for at least six years. Community groups and unions have tenaciously fought back against proposed developments in Staten Island, Queens and Brooklyn in the past, causing former Walmart CEO H. Lee Scott Jr. to tell reporters that building a New York store was "not worth the effort."

But this time, Walmart could have better luck. Knowing that friends in high places always help, the company won over the support of New York City Mayor Michael Bloomberg, who said through a spokesman, "We shouldn't tell businesses that want to invest and create jobs in New York City that they can't. New Yorkers are already voting with their feet when they drive outside the city to shop at stores that aren't in the five boroughs."

Walmart has reportedly hired dozens of real estate agents to scout potential store locations across the five boroughs, while its PR machine has started working overtime in the city. As In These Times notes:

"The New York Post obtained a copy of an auspicious 'analysis' that said New York residents spent $165 million last year at Walmart's suburban stores. The article wrote that the city could benefit from the millions of tax revenue dollars and hundreds of jobs but that assertion is overstated. The folks over at the Drum Major Institute point out that taxable retail revenue in New York City from 2008-2009 was $31.3 billion. That means the amount city residents spend at suburban Walmarts is less than one-half of one percent. And if Chicago is any example, there is no evidence that shows big box stores stimulate economic growth."

The retailer hasn't yet managed to convince everyone with power in the city; City Council Speaker Christine Quinn maintains that "Walmart can say they are a different company, but we are not going to roll the dice in New York City. ... You can't teach an old dog new tricks." But with Bloomie on board, the road is paved for Walmart to move in. Tell Mayor Bloomberg to stand up for New York workers and not let Walmart drive down wages and destroy local businesses in the Big Apple.

Photo credit: Brave New Films