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Retailer challenges law limiting large stores

Monday, Feb. 2, 2004 | 9:20 a.m.

OAKLAND, Calif. -- Wal-Mart Stores Inc., the world's largest retailer, is attempting to block a law in Alameda County outlawing large stores that sell groceries along with other merchandise.

Wal-Mart filed a lawsuit in state court over the law passed this month by the county's board of supervisors. It prohibits stores larger than 100,000 square feet from devoting more than 10 percent of the floor to groceries and prescription drugs, the Bentonville, Ark., company said in a statement.

"This ordinance is anti-competitive and anti-consumer," the company said.

Wal-Mart is facing opposition from municipalities in California that want to block large grocery stores they say undercut local merchants and create traffic problems. Similar ordinances have been passed in Oakland, Alameda County's largest city, and nearby Contra Costa County, where residents will vote on a ballot measure on the stores in March.

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