While Americans are buying trash bags and Great Value soda at Walmart, Walmart is buying…malls.
TL;DR
- Walmart invested over $110 million in acquiring shopping malls this year.
- Walmart acquired a retail plaza in Norwalk, CT, for $44.5 million.
- Walmart also purchased Monroeville Mall in Pennsylvania for $34 million.
- These acquisitions signal a shift towards Walmart becoming a property owner.
The big-box colossus just snagged a Norwalk, CT, retail plaza for $44.5 million, beating out a “substantial” amount of interest in the space by laying out the juiciest offer, according to Jeff Kintzer, a principal at Royal Properties, which represented the seller.
The shopping center is anchored by a Walmart store, so the company's transition from tenant to proprietor isn't particularly noteworthy on its own. According to the New York Times, Walmart already owns many of its sites. However, this transaction is indicative of a developing trend:
- Walmart acquired an additional shopping center in Bethel Park, PA, during May, where it also served as the primary tenant.
- Most notably, Walmart acquired a separate Pennsylvania mall in January, a location where it hadn't previously operated any retail stores.
Monroeville Mall (Walmart's Interpretation)
Walmart acquired the Monroeville Mall in Western Pennsylvania for $34 million. Coincidentally, the company sought a store in Monroeville two decades ago but was refused by local officials. In a potential retaliatory action, akin to Taylor Swift's style, Walmart's mall purchase could facilitate market entry more readily than obtaining permits and constructing a new location.
The company hasn't offered any statements regarding its intentions in Monroeville, yet it did submit an application for a $7.5 million grant for redevelopment from The Commonwealth of Pennsylvania. This funding is intended to assist with the “full demolition” of the shopping center and the construction of new spaces for retail, dining, and entertainment.
What in the (Wally) world? In 2018, Walmart publicly announced a plan to reimagine spaces around its stores as “town centers” that could include local food vendors, gyms, and recreation centers. The Monroeville acquisition might be part of that. Who among us is not a little behind on our New Year’s resolutions?—HVL
This report was originally published by Morning Brew.