Wal-Mart Plans 450,000 SF in Two Supercenters

The close proximity of the locations is causing some residents and brokers to see an overkill strategy on the local retail market by Wal-Mart, according to a published report. Construction is expected to begin by first quarter 2004 on both stores.

Wal-Mart officials couldn't be reached at the store's headquarters in Bentonville, AR to learn the cost of the projects. But area construction industry estimators familiar with past Wal-Mart ventures tell GlobeSt.com the retailer could build the stores for about $50 per sf or a total $11.25 million for each location.

At Cagan Crossings, the newest Wal-Mart store will complement 700,000 sf of planned commercial and 8,000 apartments, condominiums and townhomes. About 1,000 homes have been built to date, says developer Isadore Cagan, president of Orlando-based Cagan Management. Wal-Mart has existing north Lake County supercenters in Mount Dora, FL and Leesburg, FL, both about 25 miles north of the two planned new stores.

While some residents criticize Wal-Mart's development strategy, others in Downtown Orlando continue to bemoan the lack of a supermarket in their immediate area. Three of Florida's largest operating grocery chains have rejected offers by two developers to set up stores near their multifamily developments.

Publix Supermarkets Inc. of Lakeland, FL; Winn-Dixie Stores Inc. of Jacksonville, FL; and Albertsons of Boise, ID have told city of Orlando officials--along with Hawthorne, NY-based GDC Properties Inc. and Sembler Co. of St. Petersburg, FL--that Downtown Orlando still doesn't have the necessary population mass to support a full-service grocery, according to a published report.

A typical supermarket needs a minimum 10,000 regular customers to make the store profitable, according to David W. Marks, president, Marketplace Advisors Inc., Orlando.