New York, Sep 21 (IANS): Walmart's plans to open a store in New York city has suffered a setback because of opposition from liberals and small store owners.

Walmart, the world's largest retailer, was expected to open its first big box store in the city, the New York Times reported.

The company said last week it will not be a part of a new mall coming up in Brooklyn.

Local unions, some members of the City Council and community groups -- who are bitterly opposed to Walmart -- raised alarm that the retailer was gaining a foothold in the city.

"We were unable to agree upon economic terms for a project in East New York," said Steven Restivo, a company spokesman.

"We remain committed to bringing new economic development and shopping options to New York city, especially in the neighbourhoods that need them most," he said.

"Walmart's withdrawal shows that when New Yorkers join arms, even the world's richest retailer is no match for them," the daily quoted Stephanie Yazgi, a spokeswoman for Walmart Free NYC group, as saying.