Chain plans distribution center in California

Monday, Aug. 22, 2005 | 9:11 a.m.

Wal-Mart Stores Inc., the world's largest retailer, said it plans to build a distribution center in Merced, Calif.

The warehouse will create 600 full-time jobs initially, Bentonville, Ark.-based Wal-Mart said in a statement. A call to Wal-Mart spokesman John Bisio at his office was answered by a machine.

Wal-Mart, which operates the Sam's Club warehouse outlets as well as its main discount chain, plans to begin construction on the facility in 2007 and begin serving its stores through the warehouse in 2008.

Same-store sales at Wal-Mart have been hurt by gasoline prices and Target Corp., whose exclusive designer products attract wealthier customers. Sales of less-profitable food have climbed faster than general merchandise every month this year except for June. Wal-Mart last week reported its smallest quarterly profit gain in four years and cut its full-year earnings forecast, citing the effect of record-high gasoline.

Wal-Mart employs about 66,600 workers in California, where has it has 149 discount stores, four supercenters and 34 Sam's Clubs.

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