Walmart Abandons Plans to Open Distribution Center in Merced, California


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Thu. March 16th, 2017 - by Robert Schaulis

MERCED, CA - Plans to build a proposed Walmart distribution center in the heart of California’s San Joaquin Valley have officially been declared dead.

According to the Merced Sun-Star, Walmart announced this Wednesday that a plan initiated in 2005 to build a 1.2-million-square-foot distribution center on a 230-acre site in southeast Merced has been cancelled.

Mike Murphy, Mayor, MercedMerced Mayor Mike Murphy called the end to the project a “business decision,” and the Sun-Star cited, as a cause for the protracted and ultimately futile predevelopment process, a three-year court battle between the retailer and a group dubbed the Merced Alliance for Responsible Growth.

Despite efforts by the retailer and city government officials, the Merced Alliance for Responsible Growth tied the proposed project up in an extended court battle. The case ultimately was declined by the California Supreme Court in 2013, but rather than immediately begin construction, the retailer stalled the project for four years before deciding to abandon it.

Walmart Storefront

The proposed distribution center was expected to employ 1,200 people.

While Walmart may have changed its tack, the company has been steadily expanding as of late. As recently as last year, the company announced plans to double the number of its online sales warehouses, completed a 450,000-square-foot distribution center in North Carolina, announced plans to build a 600,000-square-foot facility in Florida, and acquired major online retailers to boost its web presence.

For more on this and other major retailers projects—and all things produce—stay tuned to AndNowUKnow.

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