Walmart ends plans for distribution center in Merced, California, city says

Wednesday, March 15, 2017 MERCED, Calif. (KFSN) -- From the window of a barbershop in Downtown Merced Richard Torres has watched other businesses come and go and this week, the city lost another.

"I wasn't really too surprised, because I knew they tried to do a lot of things that fall through."

Walmart broke the news Wednesday, canceling its plans to build a 1.2 million square foot warehouse on the Southside of Merced. The company said the retail industry has changed.

"It took us a bit of a shock, we asked questions, tried to see if they could reconsider, but no," said Mike Conway, Assistant to the City Manager.

Walmart first announced its plans to build the distribution center in 2005, but the city says a lawsuit filed immediately by the Merced Alliance for Responsible Growth caused the project to lose steam.

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