America’s oldest shopping center is undergoing a $400 million transformation to make it a glittering mall of tomorrow, featuring high-end brands and top of the range amenities.
With its teal-and-flamingo-pink color scheme and high-tech air conditioning, the Southdale Center stunned shoppers when it opened in 1956 as the US’ first climate-controlled, indoor shopping center.
However over the years competition from rival malls elsewhere in suburban Minneapolis, store closures and reduced footfall meant its former glory began to fade.
But now, mall giant Simon Property Group SPG is ploughing hundreds of millions of dollars into the complex, drawing in big name brands and building luxury amenities.
Among the new facilities being offered are a pickleball court, a Hilton Hotel and a host of world-class brands including Gucci, Rolex and Moncler.
America’s oldest shopping center is undergoing a $400 million transformation
The Southdale Center in suburban Minneapolis stunned the Twin Cities when it opened in 1956 as the US’ first climate-controlled, indoor shopping center. Pictured: The center in 2009
Mall giant Simon Property Group SPG has produced CGI images showing what the newly imagined Southdale could look like
Among the new facilities being offered are a pickleball court and a luxury hotel
Defunct departments stores are making way for the likes of high-tech mini golf operator Puttshack, reflecting a the shift in the way Americans use the mall.
Research suggests that while shoppers are spending less time in malls, they are more likely to spend bigger on high value items, the Wall Street Journal reports.
It means that lower footfall, which only slumped further in the pandemic, top-tier malls have surpassed 2019 tenant-sales levels.
‘The good malls are thriving,’ Floris van Dijkum, managing director at the investment firm Compass Point Research & Trading told the outlet.
‘If you have the capital to reinvest in your malls, that’s how you keep them vibrant and relevant.’
For the 52,000 town of Edina where the mall is located, the post-pandemic shift to hybrid working has also meant a boost for local retail which Simon’s CEO said influenced the company’s decision to take on the project.
However in many parts of the 80 acre complex, the glamour is still pending amid ongoing construction.
Floors were ripped up and the retro color scheme painted over to compliment a fresh new layout.
The complex has already been given a boost by the edition of high end fitness center Life Time
The reimagining shows the host of high end store fronts which are due to arrive following deals with big brand names like Gucci, Moncler and Max Mara
Life Time CEO Bahram Akradi believes malls need to more than just offer shopping opportunities
In its day however, the mall was considered the pinnacle of design and was constructed for $20 million to emulate the high-vaulted, enclosed shopping markets in Europe.
The main atrium had tables with umbrellas like outdoor European plazas, a fish pond and a 21 foot high birdcage.
The year after it opened, 20,000 people flocked to the center to watch a live gameshow hosted by Bob Barker.
‘It was a place where you could really go and spend an afternoon—have lunch or meet with friends,’ Harmony Kaplan, who was a teenager when Southdale opened, told the Wall Street Journal. ‘That’s where you got your first job.’
‘I would ride my bike here. It was exciting, it was really a very busy mall,’ Mary Rattei, 76, added. ‘There’s not much going on in the mall now.’
Simon hopes this is about to change however. The complex has already been given a boost by the replacement of a shuttered JCPenney with the upscale Life Time fitness center and the addition of a LuluLemon.
Its hoped a pickleball court at the $259 a month Life Time will attract even more customers.
Life Time CEO Bahram Akradi believes malls need to more than just offer shopping opportunities.
The mall was considered the pinnacle of design and was constructed for $20 million to emulate the high-vaulted, enclosed shopping markets in Europe.
The food court was ‘outdoor themed’ and designed to look like European plazas
The main atrium had a fish pond and a 21 foot high birdcage
In 1957, more than 20,000 people flooded into the mall in five days for a live game show hosted by Bob Barker
‘You can really build the focal center for commerce, for getting together, for unity,’ he said. ‘If we think about them as retail, that’s a mistake.’
But there will be plenty of opportunity for retail therapy, as Simon has signed leases with luxury brands Burberry, Gucci, Moncler, Max Mara and Coach to name a few.
While many retailers are struggling to compete with online shopping, luxury brands have weathered the store better since their customers are more likely to want to see a high-ticket item in person before splashing the cash.
The declining fortunes of big name mall staples such as Sears and Macy’s have posed problems from retail complexes in recent years.
Last month Macy’s unveiled plans to shutter 150 stores, almost a third of its locations.
This presents particular strain for low end malls, which often lack the capital to attract new tenants.
For Simon though, which is the largest mall operator in the US with 83 enclosed properties, the focus is investing on its most lucrative properties where it plans to spend $800 million this year on up to six new projects.
Southdale Center’s market value is now almost $300 million, according to Minneapolis officials
Defunct departments stores are making way for the likes of high-tech mini golf operator Puttshack, reflecting a the shift in the way Americans use the mall
David Simon, chief executive of Simon Property Group, said he believes there will always be a place for convenient and well maintained malls
Meanwhile, Southdale Center’s market value is now almost $300 million, according to the city.
David Simon, chief executive of Simon Property Group, said he believes there will always be a place for convenient and well maintained malls.
‘There’s very few products in real estate that have that kind of longevity and staying power,’ he said. ‘Malls are resilient as hell.’
