A spokesperson for Los Angeles Alliance for a New Economy said the local community and small businesses will be disrupted by the large retailer's presence.
The chain obtained necessary permits to build a 33,000-square-foot store last week, one day before the City Council was due to vote on a building moratorium for large retail chains in Chinatown.
Wal-Mart says a handful of special interests are working to block jobs, economic development and shopping opportunities from coming to the downtown and Chinatown communities.
The Associated Press contributed to this report.
