Big box retailer, Walmart is not letting a downtick in popularity amidst DEI policy controversies and a precarious brick and mortar landscape get it down. After several store closures, the retailer is shifting its focus to a variety of other ventures in order to keep the business relevant in an over-saturated industry.
The retailer recently sold its robotics business to Symbotic with the aim of automating its distribution centers through the use of Symbotic’s AI systems. The company has also been introducing new services in store such as banking and financial services, and same-day pharmacy delivery.
Now, the big box grocer is using funds saved from shutting down underperforming branches to take over an entire mall.
Is Walmart becoming MALLmart?
The Monroeville Mall which is situated 12 miles east of Pittsburg was recently bought over by Walmart. This purchase was confirmed by the retailer in late January. In a statement, the company shared that it “is very interested in being part of any future redevelopment of this site.” The specifics of the retailer’s future plans for the space has not yet been revealed.
The mall was sold by CBL Properties in a fully cash deal amounting to $34 million.
It is no hidden fact that something similar to a “retail apocalypse” is happening in the retail industry and it is widespread. The rise of e-commerce platforms has rendered brick and mortar retail spaces like malls all but obsolete. As a result, mall owners are having to come up with new and creative ways to bring in foot traffic.
Shopping centers are regularly being redeveloped and this move by Walmart is a prime example of it. Malls are often introducing new restaurants for this reason as well. Occasionally, malls are also repurposed entirely and can end up being turned into apartment complexes — assuming they do not get demolished entirely.
Other options for malls to stay afloat is by taking advantage of the e-commerce boom and repurposing itself into fulfilment centers for companies like Amazon.
What’s the plan for this mall?
The Monroeville Mall has been home to stores like Macy’s, JC Penny, Claire’s, and Victoria’s Secret. The mall also had a Cinemark movie theater, and according to the website, covered a 186-acre space of land. The mall is also something of a landmark site to horror movie afficionados as it is the set location for the movie ‘Dawn of the Dead’.
Texas-based Cypress Equities was chosen to represent the retailer in managing the property and redevelopment of this mall with a zombie-themed history.
Cypress Equities CEO, Chris Maguire shared that Walmart’s decision to purchase a mall took him by surprise. Maguire has worked with the retailer previously by sourcing sites, closing stores, and building new ones. Maguire was brought in to work on this project sometime in October. Now, several months later, he has shared that they are “shifting into planning mode” with architects and a design team working on the master plan for the space.
The roots of the mall will be kept and Maguire shared that “this is going to be a retail-driven, mixed-use project.”
The recent closures of stores can be perceived as a positive restructuring, rather than a loss since the company has additional plans to open a minimum of 150 stores over a 5-year period. The retailer will also be refreshing existing stores with brighter lighting and increased space between aisles. They will also be increasing the number of remodels per year from 450 to 650.
Maguire hopes this move by Walmart will inspire other companies to consider making similar moves.
“As we all know, there’s a lot of malls out there in the U.S. that aren’t going to operate as an enclosed mall,” he noted. “So hopefully things like this are going to happen in other markets with properties that have really deteriorated over a long period of time and need a new vision.”