San Diego votes to ban Wal-Mart Supercenters

Wal-Mart Stores, Inc. (NYSE:WMT) has a mighty foe in the state of California, as many communities -- generally in the Southern California area -- have gone to great strides to block the world's largest retailer from opening up shop. Now you can add sunny San Diego to that list.

The San Diego City Council voted late Tuesday to ban certain giant retail stores -- including Wal-Mart. The vote dealt a blow to Wal-Mart's potential to expand in the nation's eighth-largest city but probably came as no surprise to many San Diego residents and Wal-Mart store watchers. Getting approved to build a Wal-Mart in one of California's largest cities would have been a major coup for the retailer, but I just did not see that happening at all.

The San Diego City Council's vote of 5-3 prohibits stores of more than 90,000 square feet that use 10 percent of space to sell groceries and other merchandise that is not subject to sales tax. Wal-Mart Supercenters and other big-box centers like SuperTarget stores most likely will fall under the measure's jurisdiction.

Mayor Jerry Sanders will veto the ban if the Council reaffirms it on a second vote, which will likely happen in January, said mayoral spokesman Fred Sainz. The Council can override his veto with five votes. So, perhaps a showdown on the San Diego Mayor and the City Council is afoot soon? I'll be watching.