NEW YORK (AP) – Wal-Mart will not be setting up shop in the nation’s largest city any time soon.

The developer that had planned to build New York City’s first Wal-Mart as part of a shopping mall abruptly dropped the world’s largest retailer from the project this week after fierce opposition from labor unions, small businesses, neighbors and politicians.

“The message to Wal-Mart today is simple,” said Assemblyman Brian McLaughlin, chairman of the Central Labor Council. “New York is one tough customer, and if you want to do business with us, you must clean up your act.”

Local stores complain that they are unable to compete with Wal-Mart because the chain can easily undercut their prices and put them put out of business. Unions claim the company blocks efforts to organize and that the chain drives down wages across the entire retail industry.

Vornado Realty Trust pulled the plug on Wal-Mart’s plans on Wednesday after opposition to the company became so strong that it threatened the survival of the entire shopping mall project, to be built in Queens.

Wal-Mart did not return calls seeking comment Thursday, but spokeswoman Mia Masten said Wednesday that the company had never actually signed a deal with Vornado. She added that Wal-Mart was still interested in exploring other locations in the city. The company has repeatedly denied claims that it hurts other businesses and treats its workers unfairly.

A Vornado spokeswoman also declined comment, but city officials said the company plans to go forward with its development plans without Wal-Mart.

Wal-Mart has sought to penetrate the potentially lucrative New York market for years as part of its push to expand into its last major arena – urban areas.

Voters in Inglewood, Calif., rejected a proposed Wal-Mart in the Los Angeles-area city last year. After overcoming intense opposition in Chicago, the company broke ground on its first store in that city earlier this week. The company announced this month that it would close a Canadian store whose workers were on the verge of becoming the first ever to win a union contract.

Labor groups in New York were particularly ecstatic about the news that the 132,000-square-foot store was not moving forward.

As the city prepares for local elections in November, the City Council has responded by being reluctant to approve development projects opposed by organized labor and community groups.

While Republican Mayor Michael Bloomberg took no official position on the Wal-Mart plan, he has supported the efforts of so-called “big box” stores to open in the city as a way of increasing New York’s tax and job base.

The city already has two Targets, five Kmarts and five Home Depots. None are unionized.