At a time when many department store chains are retreating from malls, Dillard’s is doubling down. The department store operator has taken the unusual step of buying an entire shopping center, paying $34 million for the Longview Mall in Longview, Texas, The Wall Street Journal reported.
The purchase was made in partnership with Trademark Property earlier this month and signals how Dillard’s sees opportunity where rivals like Macy’s and JCPenney have pulled back. The appeal, as Co-Chief Financial Officer Chris Johnson laid out to the Journal, was a favorable price and the ability to prevent the mall from falling into the hands of what he called “bad actors.”
“They are not paying their utility bills, not paying property taxes. Every mall they own deteriorates,” Johnson said, without naming specific landlords. A poorly maintained mall not only drives away shoppers, he added, but also undercuts tenants’ ability to generate sales.
Trademark will handle operations and management of the East Texas property. The deal is not without precedent for Dillard’s; the company also acquired another shopping center in 2014, underscoring its willingness to act as both retailer and landlord.
The move highlights a broader industry shift. Over the past few years, investment groups such as Kohan Retail Investment Group and Namdar Realty Group have scooped up struggling malls at deep discounts. But according to the Journal, many so‑called “zombie malls," which are underperforming locations, have seen values plummet between 50% and 70% as owners stopped paying down debt and, in some cases, handed properties back to their lenders.
Critics say that some of the bargain hunters who buy up distressed centers allow them to languish without upkeep, forcing local governments to step in, occasionally through lawsuits.
Department stores face special risks in these situations, since many own their real estate and thus bear the brunt of declining traffic when properties fall into disrepair. By taking control of the mall itself, a retailer can protect its own business, invest directly in upkeep and generate income from tenants. Earlier this year, Walmart took a similar tack, acquiring the Monroeville Mall outside Pittsburgh for $34 million.
Dillard’s enters this strategy from a position of relative financial stability. Despite sluggish results in a difficult 2025, the company posted net income of $72.8 million for the quarter ending August 2 and reported $1.01 billion in cash and cash equivalents, an increase of $294.1 million.
Signs of recovery in the sector may be fueling that confidence. Lenders have shown more willingness this year to finance stabilized shopping centers with strong cash flow, according to Trepp. And foot traffic to high‑performing Class A malls held steady last year, with some upticks, Newmark has reported.
For Dillard’s, the bet on Longview Mall represents both a hedge against decline and an opportunity to control its own retail environment. In a marketplace where many malls are struggling, the chain appears ready to play landlord to secure its footing.
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