San Diego takes first step to ban giant retail stores like Wal-Mart

SAN DIEGO (AP) — The City Council here voted late Tuesday to ban certain giant retail stores, dealing a blow to Wal-Mart's potential to expand in the nation's eighth-largest city.

The measure, approved on a 5-3 vote, prohibits stores of more than 90,000 square feet that use 10% of space to sell groceries and other merchandise that is not subject to sales tax. It takes aim at Wal-Mart (WMT) Supercenter stores, which average 185,000 square feet and sell groceries.

Mayor Jerry Sanders will veto the ban if the Council reaffirms it on a second vote, which will likely happen in January, said mayoral spokesman Fred Sainz. The Council can override his veto with five votes.

Wal-Mart has about 2,000 Supercenter stores, including 21 in California, but none in the San Diego area. The retailer has 18 regular Wal-Mart stores in the San Diego area, including four within limits of the city of 1.3 million people.

San Diego's move comes two months after the Chicago City Council failed to override Mayor Richard Daley's veto of a so-called "living-wage" ordinance that would have required giant retailers to pay their workers higher wages.