Wal-Mart in new legal challenge to Supercenter ban
Lawsuits seek to overturn local laws
February 13 2003
Wal-Mart has launched a new legal challenge to local laws which seek to limit development of its Supercenter format in California.
The world’s biggest retailer has filed lawsuits with the California State Superior Court and the Federal Court, challenging a Turlock City Council ordinance that will ban Wal-Mart Supercenters.
The ordinance bans retailers with total sales floor area in excess of 100,000 square feet from devoting more than 5 per cent of the sales area to the sale of non-taxable merchandise, such as groceries and prescription drugs.
Last month, Wal-mart launched a legal challenge to a similar ordinance in Alameda County, California. Turlock City Council passed the ordinance in December, aiming to stop any move by Wal-Mart to open in the area.
Peter Kanelos, Wal-Mart spokesman said: “Targeting Wal-Mart with irrational restrictions is not a legitimate function of city government.”
He said the restrictions contravene state and federal safeguards, and deprive Wal-Mart of constitutional protection. “It is regrettable that we must take legal action, but we do so because it is in the best interest of our customers and our shareholders.”
