Oakland may Block Big-Box Grocery Stores: 
Two Council Members Propose Moratorium 

CECILY BURT / Argus 28mar03

OAKLAND—Attention Wal-Mart or Kmart: Don't even think about super-sizing in Oakland.

That's the message City Council President Ignacio De La Fuente and Councilmember Jane Brunner want to get out. They are proposing a 45-day moratorium on new big-big box grocery stores larger than100,000 square feet in Oakland.

De La Fuente said retailers such as Wal-Mart Super Centers, Super Kmarts and Super Targets devote as much as 40 percent of floor space to groceries offered at deep discounts—as much as 20 percent lower than the prices at traditional grocery store chains such as Albertsons and Safeway.

Those food discounts—made possible by low wages and sales of nonfood items—create unfair competition and drive smaller grocers out of business altogether, De La Fuente said. Wal-Mart is now the biggest grocery retailer in the country.

In addition, neighborhoods are affected by heavier traffic as more people drive across town to shop at the store, he said.

"(Studies have shown that) Super stores like Wal-Mart have a detrimental impact on the community," De La Fuente said. "When a large portion of the store is (groceries or pharmaceuticals), it entices people to buy other goods there."

De La Fuente said his proposal would not eliminate membership stores or other big-box retailers from opening in Oakland if they are smaller than 100,000 square feet.

Nor would it block super stores larger than 100,000 square feet, as long as no more than 10 percent of the sales floor is devoted to non-taxable items such as food and drugs.

Amy Hill, spokeswoman for Wal-Mart's Northwest Region, said the company has been battling three years to build a 156,000-square-foot store in Fremont, where concerns have been raised about traffic, air quality and flooding problems it could generate.

Hill said she is not aware of any specific plans to open a super Wal-Mart in Oakland, but the company is always looking for sites and new opportunities.

City staff received inquiries from real estate brokers last year regarding potential locations for Wal-Mart, De La Fuente said.

The city staff report on his proposed moratorium cites studies detailing traffic impacts generated by big-box grocers—not to be confused with big-box retailers such as Home Depot.

Apparently, the grocery store component draws thousands of vehicles throughout the week because people shop for food more often than other goods.

The report also states big-box grocers are not compatible with the city's general plan because they do not promote the vitality of existing neighborhoods and commercial areas.

De La Fuente also makes no secret of his disdain for non-union companies such as Wal-Mart.