The proposal was introduced last fall by Jackie Goldberg, a councilwoman from Hollywood who has since moved up to the state Assembly. It would ban big box stores larger than 150,000 sf if at least 11,000 sf would be used to sell groceries or take-out food.

Backed by labor unions, the measure was aimed squarely at non-union stores such as Wal-Mart and K-mart--competitors of unionized grocers such as Ralphs Groceries Inc. and Vons. The labor unions argued that non-union stores pay lower wages, which drags salaries down across the board.

Most developers and retailers united against the proposal, and some threatened to sue if the measure became law. The plan could conceivably be revived, though the Planning Commission's rejection means a super-majority of 10 City Council members would have to support the measure instead of a simple majority of eight.