(Reuters) - Wal-Mart Stores Inc (WMT.N) said on Friday it had failed to reach a deal with a developer to have a store in Brooklyn's East New York neighborhood, dealing the company a setback in its attempt to open its first location in the largest U.S. city.
Wal-Mart, the world's largest retailer, had been in talks with Related Companies to open a store that would have anchored the Gateway Two Plaza development in Brooklyn. A Shop Rite supermarket will instead occupy that space.
In a statement, Wal-Mart said it would continue to look for a site, adding that most New Yorkers want the discount giant to open a store in their city.
"We remain committed to bringing new economic development and shopping options to New York City, especially in the neighborhoods that need them most," Steven Restivo, Wal-Mart's senior director of community affairs, said in the statement.
Wal-Mart has faced opposition from some groups in New York that say it does not pay its workers adequately and would drive out small local businesses.
(Reporting by Martinne Geller, Ilaina Jonas and Phil Wahba in New York; Editing by Dale Hudson)
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