Big-box Retailer Pulls Out, but Home Improvement Chains Now Want to Move In

PHOENIX–One big-box retailer’s loss could be a home improvement chain’s gain. A site in south Phoenix, where Wal-Mart had planned to build an over-sized store, is now being considered as a possible store location by Home Depot and Lowe’s, says Mike Curley, an attorney representing the developer of the parcel, Kitchell Development Co.

No deal has been struck yet, but both home improvement retailers are closely examining the project, he says.

Wal-Mart had wanted to build a 200,000-sf super center there. When the city capped the size of the largest building that could go on the site at 130,000 sf, Wal-Mart last week canned the project.

Local residents had complained that the giant store would be out of scope for the neighborhood, and the large grocery store component of Wal-Mart would drive local grocers out of business.

Phoenix is among four Valley cities that have either already enacted or are in the process of creating limits on the size and location of where big-box retailers can build. Tuscon has already imposed such limitations, which caused Wal-Mart last week to file a second lawsuit against the city in hopes of overturning the regulations.

The site, a 42-acre parcel, is at the southeast corner of 24th Street and Baseline Road.