Activists who opposed the measure — which would have allowed Wal Mart to skirt zoning, traffic and environmental reviews — said it would hurt the community by inviting the Supercenter to drive out small business and encourage sprawl.
With all 29 precincts and absentee ballots counted late Tuesday night, Inglewood voters opposed the measure 60.6 percent to 39.3 percent, said Gabby Contreras of the city clerk's office.
The tally was 7,049 votes against the initiative and 4,575 in favor. Contreras said there are about 40,000 registered voters in the city.
"This is very, very positive for those folks who want to stand up and … hold this corporate giant responsible," said Daniel Tabor, a former City Council member who had campaigned against the initiative.
Debate raged for weeks in this working-class community. Opponents said passage would clear the way for Wal-Mart to build a combination supermarket-retail store next to Hollywood Park racetrack.
The City Council last year blocked the proposed shopping center, which would include both a traditional Wal-Mart and other stores — prompting the Bentonville, Ark.-based company to collect more than 10,000 signatures to force the vote.
In a statement, the company said the decision means Inglewood residents will have to go elsewhere to shop at Wal-Mart.
"We are disappointed that a small group of Inglewood leaders together with representatives of outside special interests were able to convince a majority of Inglewood voters that they don't deserve the job opportunities and shopping choices that others in the LA area enjoy," the company said.
Wal-Mart had argued in Inglewood and elsewhere in California that its stores create jobs and said residents should be able to decide for themselves whether they want the stores in their community.
But opponents argued the Supercenters amount to low-wage, low-benefit job mills that displace better-paying jobs as independent retailers are driven out of business. They also fear the super-sized stores will contribute to suburban sprawl and jammed roadways.
Wal Mart boasted sales of $157 billion in fiscal year 2003 in its Wal Mart stores alone, and $244 billion in sales altogether. But as the firm's success has grown, so have complaints about how it treats employees.
In October, federal agents raided Wal-Mart's headquarters and 60 of its stores across the nation, arresting more than 300 illegal workers. According to the company's annual report, it is the target of 33 class action lawsuits in 31 states alleging that managers forced employees to work off the clock.
At least 14 other lawsuits against the firm concern labor practices, alleging discrimination, forced overtime and failure to cover prescription contraceptives.
The cases are pending.
Objections to Wal-Mart Stores Inc. have surfaced elsewhere around the country, including Chicago, where the City Council recently stalled a measure to approve the first Wal-Mart inside city limits because of concerns about the company's labor practices.
The company succeeded in lobbying residents in Contra Costa County, where residents voted last month to allow a Supercenter. But Wal-Mart also lost a vote that day to allow it to open another store near San Diego.
Wal-Mart had spent more than $1 million in its Inglewood campaign, according to campaign finance records, while opponents spent a fraction of that amount.
Alversia Carmouche, a beauty shop owner who voted against the measure Tuesday, said she was convinced the behemoth discount store would ultimately hurt the community.
"Maybe the store would possibly be a good thing in the beginning, but it will drive out the smaller businesses," said Carmouche, 66. "I really feel it will absolutely close this town out."