Wal-Mart looking at first central city expansion in LV

Phil Levine

Wednesday, May 3, 2000 | 10:52 a.m.

Wal-Mart Stores Inc. is considering Las Vegas' beleaguered Westland Fair shopping center as a possible site for its first local supercenter.

Located on the south side of Charleston Boulevard east of Decatur Boulevard, the proposed supercenter would be the first local Wal-Mart to include a full grocery store, and would be the first Las Vegas-area Wal-Mart at an existing shopping center. Other local Wal-Marts were built as part of new retail developments.

Wal-Mart spokeswoman Amy Hill said about one-third of space in the new store would be devoted to selling groceries.

A public hearing is scheduled for May 11 by the Las Vegas Planning Commission to discuss a proposal by Houston-based Weingarten Realty Investors to re-develop the site, with Wal-Mart as an anchor tenant.

Hill said the company is "very interested" in the Charleston location, but has yet to close a deal for the site. If the project proceeds, the store could employ as many as 500 people.

A Weingarten spokesman could not be reached for comment.

Hill said Wal-Mart believes the location is desirable as it would provide the company with a retail outlet for "an under-served area" in the Las Vegas market.

The nation's largest retailer currently operates six Las Vegas-based stores and one in Henderson, as well as two local Sam's Clubs.

The Westland Fair mall is currently anchored by a Service Merchandise outlet, but stands mostly vacant.

In recent years, several Westland Fair retailers have closed including a Phar-Mor drug store, a Builders Square home improvement store and a Computer City retail outlet.

Industry experts say Wal-Mart's choice of the Westland Fair location could prove beneficial to the company, area consumers and local merchants.

"That shopping center's been there for many years," said Matt Bear, retail specialist with Las Vegas real estate broker Colliers International. "It's a good choice for Wal-Mart that I think would prove very successful for them.

"I also think it would well serve consumers living within 2 to 3 miles of the store. The arrival of Wal-Mart could also help revitalize that center."

Alex O, retail specialist with broker CB Richard Ellis, agrees.

"I think that a Wal-Mart could very well rejuvenate that (shopping) center," he said. "There are several retailers who might want to reposition themselves close to a Wal-Mart store.

"Given the demographics of the area, I also believe that location would be very well-suited for a full-scale grocery store."

O said the center's layout is one reason some retailers have failed to prosper at the site.

"The stores are really hidden back (from the street), and if Wal-Mart comes in there they need to look at developing a new site plan."

Wal-Mart is also expanding some of its existing Las Vegas locations; construction work is under way at two Las Vegas Wal-Mart stores.

Wal-Mart outlets at the intersections of Eastern Avenue and the I-215 Beltway and Craig Road and Nellis Boulevard are currently under expansion.

Upon completion of those expansion projects, both locations will span slightly more than 200,000 square feet.

The Bentonville, Ark.-based retailer has been the target of considerable controversy with its proposal to build supercenters in Clark County. Union leaders have sought to convince local authorities to block the company's efforts to open stores that offer a full range of groceries.

Under a previously passed ordinance, new "big box" stores in Clark County would be restricted to devoting only 7.5 percent of space to groceries. But on April 19, Clark County Commissioners took the first step to replace that six-month old law.

At that meeting, the Clark County Commission introduced two ordinances. The first was designed to repeal the old law, while the second ordinance would establish a new standard for future development of large retail stores.

On May 17, the Commission is scheduled to review the issue, and may decide on a final wording for the new law.

The proposed store at Westland Fair is within the city of Las Vegas, and would not be affected by the ruling.

Hill said Metro Las Vegas' rapid growth means the area has fewer Wal-Mart stores than other comparably sized population centers nationwide.

"Our usual ratio is one Wal-Mart store for every 100,000 people," said Hill. "So you can see we are well behind where we think we should be (in Las Vegas)."

She said the company usually looks at building its own sites for new store locations.

"But this wouldn't be the first time we've looked at developing existing sites (to build new Wal-Mart stores)," said Hill.

"If a site serves our customers well, and can revitalize a (retail) corridor, we are always willing to consider it."