CORRECTING and REPLACING Wal-Mart Ban Could Hurt California Consumers and Supercenter Alike -- RTKL Suggests a More Community-Based Approach to Big Box Retailing --.

Business Editors

CORRECTION...by RTKL

NEW YORK--(BUSINESS WIRE)--March 8, 2004

In BW5268 issued March 8, 2004: Please replace the release with the following corrected version.

The corrected release reads:

WAL-MART BAN COULD HURT CALIFORNIA CONSUMERS AND SUPERCENTER ALIKE --RTKL SUGGESTS A MORE COMMUNITY-BASED APPROACH TO BIG BOX RETAILING--

Despite the promise of super-savings, many consumers fear that Wal-Mart stores will hurt their economy and destroy their local communities. If Wal-Mart doesn't change its strategy, they may be right.

In California, consumer fears in numerous communities have resulted in regional bans, preventing Wal-Mart supercenters from opening up shop across much of the Golden State. Additional legislation is pending in several California communities, which would prohibit the development of "big-box" stores.

"The problem with this approach is that a ban deprives consumers of the very real benefits that big box stores such as Wal-Mart supercenters offer," notes Nate Cherry, an Associate Vice President at RTKL, one of the largest design, planning and architecture firms in the world. "Wal-Mart needs to work with communities and consumers to make their supercenters as appealing as their prices. It's an achievable goal and one that, ultimately, is beneficial to all parties."

RTKL is presently working with many municipalities in California, and suggests that Wal-Mart consider the following changes to win the hearts of state lawmakers - and wallets of consumers:

-- Follow in the footsteps of successful predecessors. Costco,

IKEA, and Target have all been successful in penetrating the

urban California market by exhibiting flexibility in working

with communities on an individualized basis. Wal-Mart could

benefit from a more political approach to moving into certain

locales, especially in assessing a community's scale and

commercial culture.

-- "Smart Growth Initiatives." Traffic is already terrible in

many population centers, and big box islands in an ocean of

parking don't hold the promise of improvement. Wal-Mart needs

to prove it can support itself using all means of

transportation options available, not just surface streets.

Its hours need to be more flexible so that people can shop

during non-peak travel hours as well.

-- Consider a smaller footprint. Although 100,000 square feet

seems to be the maximum size for in-fill urban locations,

Wal-Mart has been unwilling to budge from its 200,000 square

foot supercenters. Wal-Mart should consider two-story

solutions similar to some multi-level IKEA and Target stores.

This lessens the store's mass and creates a less invasive 

building on the landscape.

-- Be happy with 1/2 a loaf. Integrate other uses that already

have local credibility. Grocery stores such as Albertsons,

Vons, Ralph's and even Trader Joe's might be willing to

support Wal-Mart if their livelihood is more assured by

teaming with them. Other uses that are sorely needed such as

affordable housing, education facilities, or public open space

can be combined with the development making a more enriched

multi-use environment.

-- Regionally appropriate design. Costco and Target have made

regionally appropriate changes to their "formula" to make

their stores visually appealing to the CA market. Use of

better quality materials, subtle lighting and signage, and the

ability to bring in natural light is key to creating a

shopping environment that stimulates rather than depresses

customers.

-- Fit in with the crowd. The labor benefits package offered by

Wal-Mart needs to more closely match the region in which the

store is located. Unfair labor practices are a turn-off to

California residents.

Nate Cherry has planned and implemented urban planning, retail and city renewal projects all over California and across the United States. To speak with him about the emerging trends and challenges surrounding these developments, please contact Melissa Buden at 212-840-1661.