There’s been quite a bit of talk in New York recently about Wal-Mart – the big box retailer is resurrecting its bid to open its first New York City store. Wal-Mart’s earlier attempts to open a Brooklyn or Queens location failed when the store came up against the city’s strong unions – who oppose Wal-Mart’s non-union approach – and a general concern about the effects of the retailer on wages and small businesses. This time around, the City Council’s Committees on Community Development, Small Business and Economic Development plan to hold a joint oversight hearing on Wal-Mart (scheduled for this Wednesday), and Christine Quinn, the Council’s Speaker, has been quoted as saying, “Wal-Mart is something I am not supportive of.” But can the City Council, unions, or small businesses actually block the store from opening anywhere within the five boroughs?
Unlike some other cities in the US, NYC doesn’t have regulations that prohibit chains. So why hasn’t Wal-Mart just opened here already, like Home Depot, Costco, Target and several other large chain retailers have before it? Although these other stores have also faced barriers to entry, particular attention is paid to Wal-Mart, as they seem to rally opposition like no other store. What’s the source of the legal barriers and the regulatory constraints – and can Wal-Mart be stopped? The answers to these questions, like so many others, lie partially within the Zoning Resolution. (more…)