Wal-Mart's new place in sun - Puerto Rico

Discount Store News, August 3, 1992

SAN JUAN, Puerto Rico -- Wal-Mart will officially open its initial store in this island commonwealth in the Fajardo Xtra Consumer Mall in Fajardo Aug. 4 following a quiet breakdown period conducted for the 91,400-sq.-ft. unit over the past two weeks.

The discounter will follow up by opening a 110,580-sq.-ft. store in the Plaza del Norte Shopping Center in Arecibo in the fall, but it has run into problems with a 110,000-sq.-ft. unit previously announced for Mayaguez.

That proposed Wal-Mart was to go into the Mayaguez Mall. Woolworth, however, has invoked a clause in its lease to try and stop the discounter, and the developer, in turn, has filed a lawsuit opposing Woolworth's action.

Wal-Mart's plan to pen its first Sam's Club on the island has run into zoning problems, which have, so far, stopped any construction on the proposed 130,848-sq.-ft. club in Caguas.

Wal-Mart is pressing ahead with its Puerto Rico growth plans by obtaining sites in Isebela and Carolina, the latter at the former El Comandate racetrack. The company hasn't indicated whether it would open Wal-Marts, Sam's Clubs and/or a distribution center at the sites. It currently plans to supply about 70% of the merchandise for its discount stores from its Douglas, Ga., DC, transshipping goods via Jacksonville, Fla. The remaining merchandise would be bought locally.

Wal-Mart is facing over a dozen Kmarts on the island, with another six planned by 1994, Kmart chairman Joseph Antonini had said.

Pace Membership Warehouse, Kmart's wholesale club arm, meanwhile, will open its initial Puerto Rico unit, a 106,000-sq.-ft. club in Bayamon, in the fall.