Several Argentine provincial legislatures, including that of Buenos Aires, the country's most populous province, are considering bills to limit the size of retail stores. The new bill, incited by the country's small- and mid-size business owners, would restrict hypermarkets to approximately 20,000 square feet. Buenos Aires is expected to vote on the issue soon.
The bill threatens Wal-Mart, in particular. The Bentonville, Ark. retail giant currently operates 11 supercenters in Argentina, four of which are located in Buenos Aires. Supercenters, which sell food and general merchandise, occupy an average 200,000 square feet. The company had planned to open four new stores in the next three years, but if the bill passes, will be forced to shut down expansion plans. Wal-Mart also worries that if other provinces pass the bill, it would hamper development throughout the country.