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Wal-Mart Cancels N.Y. Distribution Center

BENTONVILLE, Ark. - Wal-Mart Stores, Inc., citing improvements in its distribution network, said yesterday it has decided not to build a 1.2 million-square-foot regional distribution center in Wallkill, N.Y., according to AP and other published sources.

Less than two weeks before construction was scheduled to begin, the retailer said its improved efficiency will let it service its stores without the expense of building the distribution center. Wal-Mart, which paid $4.2 million for the land and did engineering work for the warehouse, intends to sell the property.

Wal-Mart originally planned to break ground in fall 2003 and open the warehouse in late 2004, but the company shelved its plans indefinitely after determining it wouldn't need the warehouse until 2005. The project was expected to cost about $50 million and create 1,000 new jobs.

In New York state Wal-Mart currently runs 54 discount stores, 23 supercenters, 18 Sam's Clubs, and four distribution centers, and employs more than 31,748 associates.
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