All Southdale Wants for Christmas Is Traffic
Holiday shoppers headed to Southdale Center will find the Edina mall in transition, as owner Simon Property Group executes on its $400 million remodel. Puttshack, the indoor mini-golf venue, is open next to Kowalski’s. Some new stores, like Breitling and Swarovski, recently opened in center court.
But the transformation is far from complete. The buzzed-about luxury wing is slated to open in June. Another 20 or so stores are still to be announced. And there are a number of question marks, like the future of the seemingly forgotten food court and largely empty third level. Will the coming of Gucci bring it all back to life?
“There’s a lot of hard work to be done,” says Tom Hanchar, Indianapolis-based Simon’s vice president of leasing. “I can say this with confidence: There’s never been a more exciting time in the history of Southdale.”
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Luxury retail, which has long eluded Southdale despite its Edina address, has garnered most of the headlines since Simon announced its reinvention plans in March. Burberry, Max Mara, Marc Jacobs, Moncler, and Rolex are among the brands that will open in 2025. But Hanchar downplays the designer goods.
“We are not just going to be a luxury center,” Hanchar says. “That’s a portion of the development, but there’s a lot of layering that goes on at these centers in creating different reasons for people to come to Southdale.”
A number of the brands already open or coming soon have simply relocated from Galleria across the street—Tory Burch, lululemon, and Kate Spade among them. “That’s part of retail,” Hanchar says, noting that it goes both ways, like when Crate & Barrel moved from Southdale to Galleria years ago. “A lot of our retail friends know how we run a shopping center. They see our vision.”
The competition seems to be good for both centers: Galleria filled its lululemon space with new-to-market lifestyle brand alo. Leasing director Jennifer Smith says the openings give her a chance to bring in other new brands that generate foot traffic: “Luxury doesn’t generate foot traffic.”
It may not matter for Southdale, with Life Time and Kowalski’s drawing more regular visitors, says retail analyst Mary Van Note of Minneapolis-based consulting firm Ginger. “Southdale is setting itself up for success, offering affordable luxury goods and experiences that bring in affluent customers more than once a week.”
As for the soon-to-arrive $4,000 Gucci handbags and $10,000 Rolex watches, Van Note thinks now might be their best chance of selling in this notoriously price-sensitive market.
“The barbell economy continues nationally—more affluents and strugglers, with fewer middle class [consumers]. This can be seen in the success of both high luxury brands and dollar stores.”
Quick Facts About Southdale Upgrades:
- By next June, 40 new tenants will be open at Southdale.
- Opening early 2025: Abercrombie & Fitch, Coach, Kate Spade, Kendra Scott, and Tumi
- The new luxury wing is located on the south side of the mall between Kowalski’s and Cheesecake Factory. It will be accessible from inside the mall on the second level.
- Design upgrades: Skylights will be installed in center court in early 2025 to bring in more natural light.
