NEW YORK CITY-With Walmart continuing its slow, controversial march into New York City, questions linger about what size stores might be on the way. Additionally, opponents wonder if New York needs Walmart or if the retailer, which has been experiencing slipping sales, needs New York City.

The Related Cos. has been in talks with the retail giant to secure a location for its entry into the New York City market. The proposed site is Gateway Estates II, a parcel of land in the East New York section of Brooklyn.

Walmart reported a drop in same-store sales for the fourth quarter of 2011, noting in a release that they had declined 1.8% for the quarter. Overall, net sales for the year were buoyed by a 2.7% increase in Sam’s Club same store sales, and increased to $419 billion.

Matt Ryan, executive director of New York Jobs with Justice, an advocacy group that opposes Walmart’s expansion into the New York City area, tells me that Walmart needs New York City, not the other way around. “Walmart’s executives have been very clear that they have to expand their business because profit shares have fallen the past few quarters,” Ryan says. “I think there’s a real problem here in that they’re targeting New York City but they won’t come clean about what it is that they’re trying to do here in the city.”

Speculation has loomed that in lieu of giant, big box stores the likes of which put the company on the map, Walmart might opt to enter the New York City market by opening smaller retail spaces. Steven Restivo, Walmart director of community affairs, tells GlobeSt.com that small format stores are, indeed, a part of the company’s strategy to make the brand more accessible in cities both large and small.

“We’re looking at opportunities across the entire city and evaluating store sizes small, medium and large,” Restivo says. “We look forward to working with local stakeholders across the country to bring the appropriate store format to their neighborhood.” The smaller stores, called Walmart Expresses, are designated as stores of 30,000 square feet or less.

Earlier this month, Ryan’s organization, in conjunction with several other groups opposed to Walmart coming to the city, staged a flash mob in the Time Warner Center, home to Related’s headquarters. Chief among their concerns are the displacement of local businesses, lower wage standards and alleged discriminatory practices. “Our coalition has concerns about Walmart that run the gamut,” Ryan says.

Regarding the issue of displaced businesses, Ryan directed GlobeSt.com to a December 2009 study out of Loyola University Chicago’s Center for Urban Research and Learning. That study indicated that the opening of Walmart stores in the Chicago area had in fact displaced businesses in the area and that a “business in the immediate proximity of Walmart had about a 40% chance of closing” over a two year period studied.

For its part, Walmart points to New York City unemployment numbers, listed in a Walmart fact sheet at 8.9%, though the number fell to 8.7% in March. Other factors the company considers favorable to its entry in the area include the need for fresh, affordable food and the fact that it paid more than $88.4 million in state and local taxes in New York State last year.

A Related spokeswoman reached for comment would only say that the company has yet to sign any leases with any retailers for the Gateway II plot.