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Walmart (WMT+1.18%) is betting on a mall comeback — at least in Pennsylvania.
The retail giant has purchased Monroeville Mall, located just outside of Pittsburgh, for a reported $34 million in cash.
A Walmart spokesperson confirmed to Quartz in an email that the company is “very interested in being part of any future redevelopment of this site.” While the retailer didn’t share specific plans for the 186-acre property, it noted that it is focused on mall operations alongside potential redevelopment.
The two-story Monroeville Mall, which houses retailers like Dick’s Sporting Goods (DKS+0.44%), Forever 21, and a curbside Best Buy (BBY+1.46%), has faced the same challenges as many shopping centers today: declining foot traffic, the rise of e-commerce, and the closure of major anchors. In response, malls across the U.S. have started to reinvent themselves. Some have been converted into apartments, fulfillment centers, or entertainment venues. For instance, Costco (COST+1.60%) plans to house roughly 800 apartments above one of its locations in South Los Angeles. Walmart’s latest purchase aligns with this broader trend to repurpose outdated retail spaces.
Walmart has tapped real estate firm Cypress Equities to spearhead the redevelopment, which the company told CNBC is expected to be a “retail-driven, mixed use project.” Initial plans include new dining options and possibly even residential units.
Despite the widely held belief that malls are dying, foot traffic trends show they still have potential. According to Placer.ai, visits to outlet and indoor malls surged by 59.3% and 57% respectively during the 2024 holiday season, suggesting there is still demand for these spaces if they can adapt. This might bode well for Walmart’s new venture, which could serve as a model for other retailers looking to breathe new life into aging centers.
Walmart had a strong 2024, driven largely by wealthier shoppers taking advantage of its wide assortment of discounts. Separately, the company is among those scaling back their diversity, equity, and inclusion (DEI) initiatives.