While some might think that giant retailer Walmart (WMT) might have had a hand in the death of the shopping mall, there are some signs that it may be the future of the mall too. At least, that is what a recent purchase indicated. Walmart investors are willing to see how this plays out, and gave Walmart shares a modest boost in the closing minutes of Monday’s trading.
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In a move that left a cold chill down the spine of horror film buffs, Walmart bought the Monroeville Mall, legendary site of the 1978 film classic Dawn of the Dead. Walmart shelled out a comparatively meager $34 million for the property, which includes 200 acres, a million square feet of enclosed space, and two stand-alone shopping centers known as the Annex and the District.
The mall itself boasts no shortage of features. A Barnes & Noble is part of the property, as are a range of specialty stores. A Cinemark (CNK) movie theater is on hand along with multiple restaurants, a food court, and even a gift shop commemorating the zombie film that made it famous. Interestingly, this is part of a plan Walmart has been working on since 2018 under the Town Centers banner, which would see malls developed around Walmart locations.
Mallrats Rejoice
Apparently, Walmart is not the only major operation taking an interest in the mall. Simon Property Group (SPG) is working to refurbish an array of its “B” malls, which are often smaller and less-trafficked than their larger cousins.
Simon is planning to put a lot of time and resources into developing the so-called “B” malls, where it sees a real potential for growth going forward. It is thus embarking on a two-year program to augment those “B” malls with new tenants and updated features like fixtures and flooring. Many “B” class malls share similar features, like modest sales and at least one anchor store being out of the picture.
Is Walmart Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on WMT stock based on 26 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 82.66% rally in its share price over the past year, the average WMT price target of $102.56 per share implies 1.24% upside potential.
