In a Digital Age, Dillard's Doubles Down on Physical Retail with Texas Mall Purchase

In a counter-intuitive move against the retail grain, Dillard’s and developer Trademark Property Co. have acquired the nearly 650,000-square-foot Longview Mall for $34 million, as first reported by The Wall Street Journal. The deal gives the department store, which already anchors the center, direct ownership and control over its physical environment.

• Beyond the purchase: The new owners plan to inject fresh capital to modernize the property. According to Trademark’s CEO, the goal is to strengthen its position as a community hub for shopping, dining, and entertainment, rather than simply maintain the status quo.

• Location, location, location: The acquisition is a calculated bet on a proven asset that dominates its local market, standing as the only enclosed shopping center within a 45-mile radius and pulling in nearly 4 million visitors annually. It's not the first time the duo has collaborated; they previously partnered on the successful redevelopment of the La Palmera mall in Texas.

While many of its peers are in retreat, Dillard's joins a small group of retailers, including Walmart, buying up their own retail space. The move suggests a renewed confidence in physical storefronts at a time when new retail construction has all but ground to a halt. The Dillard's deal shows that for the right property in the right market, some major retailers see more opportunity in owning their brick-and-mortar future than in abandoning it.

• The wider view: The move comes as analysts make a bullish case for physical retail, with one report noting a 45% jump in sales per square foot since 2019. The trend extends to the highest end of the market, where luxury giants like Gucci's parent company are also spending hundreds of millions to acquire their own flagship real estate.