WalMart has just signed a deal to build its first Neighborhood Market grocery store in Los Angeles. By building this Neighborhood Market grocery store, they are hoping to compete with the traditional grocery store chains such as Safeway, Inc. and Kroger. They want to put pressure on what is considered one of the nation’s competitive markets for food sales.
The Neighborhood Market will be on the ground floor of a senior housing complex located on the edge of the Chinatown neighborhood on the edge of downtown Los Angeles. The store has the plans to be thirty-three thousand square feet but as of yet, there has been no opening date set. This store will be approximately one-fifth the size of the traditional Wal-Mart and will sell along with food, everyday items.
Critics are worried that if WalMart builds this Neighborhood Market it would crush the small family-owned businesses in Chinatown’s neighborhood and would offer jobs that will not provide a living wage. A spokesman for Wal-Mart states that the benefits and wages are competitive and that its stores will help to spur economic growth.
At this time WalMart operates one hundred sixty-seven Neighborhood Markets across the United States. The first one opened in Chicago in 2011.