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Walmart Expands Its Portfolio by Acquiring Monroeville Mall
In a notable development, Walmart has officially entered the mall ownership arena with its recent acquisition of Monroeville Mall, located approximately 12 miles east of Pittsburgh. The retail giant confirmed the purchase, which was part of a cash transaction valued at $34 million, as announced by CBL Properties, the former owner of the mall.
Walmart expressed a keen interest in the future redevelopment of the site, though specific plans have not been disclosed at this time. This move signifies Walmart’s strategic expansion beyond traditional retail operations into the realm of real estate, where it can explore innovative uses for the mall space.
The changing landscape of retail has prompted many malls to consider alternative uses as consumer habits evolve. Former retail spaces are increasingly being transformed into multi-functional areas that may include housing, restaurants, and fulfillment centers for e-commerce. For example, some shopping centers have transitioned into facilities that support online retail operations, such as Amazon fulfillment centers, as traditional anchors like Sears fade from the market and others downsize.
Monroeville Mall currently houses a variety of tenants, including department stores like Macy’s and JCPenney, as well as specialty shops such as Claire’s, Victoria’s Secret, and American Eagle, along with a Cinemark movie theater. This extensive 186-acre site offers significant opportunities for redevelopment.
The acquisition was previously covered by the Pittsburgh Post-Gazette, which highlighted the surprising nature of Walmart’s decision to invest in a mall setting, a departure from its usual retail focus. Walmart has previously made significant investments in e-commerce, such as its $3.3 billion purchase of Jet.com and a $2.3 billion deal for TV manufacturer Vizio, aiming to strengthen its advertising capabilities.
To manage the Monroeville Mall project, Walmart has engaged Texas-based Cypress Equities, a firm with prior experience in assisting Walmart with site selection and store development. Chris Maguire, CEO of Cypress Equities, mentioned that while they have collaborated with Walmart in finding and developing retail spaces, the interest in a mall setting was unexpected. Cypress is now moving forward with planning and design for a mixed-use redevelopment project that incorporates retail, entertainment, and possibly residential options.
Maguire pointed out that there is a growing demand for food, beverage, and entertainment offerings in the area. Discussions with city officials have also been initiated regarding the possibility of incorporating housing into the mall’s future layout.
Walmart, which operates over 4,600 stores and approximately 600 Sam’s Club locations across the United States, is actively pursuing expansion. Plans for Sam’s Club include opening more than 30 new stores within the next five years, while Walmart anticipates adding over 150 new stores, some of which will involve remodeling existing smaller locations into larger formats.
Recent expansions have seen Walmart open new locations in North Carolina, Florida, and Georgia, with a dozen more set to launch in the coming year, particularly in high-demand areas like North Texas and Houston. Furthermore, Walmart continues to refresh its existing stores, having remodeled over 2,000 locations in the past three years and targeting 650 remodels annually moving forward.
As for the future of mall acquisitions, Walmart has not indicated whether it is considering additional mall purchases. However, Maguire noted that the Monroeville Mall deal could inspire a trend towards similar redevelopment projects across the U.S., especially in areas where traditional malls have struggled and are in need of innovative revitalization.
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