The Southdale Center is the oldest shopping mall in the United States, dating back to 1956.
However, with the stimulus of a $400 million face-lift, the same mall becomes the cynosure of every eye and a futuristic marvel. The company commissioned for the renovations is looking to dust off the wear and tear of time and put a new shine on the facility.
The Old and New Unveiling of a Grand Structure
It’s already known that the renovated mall will feature top consumer brands and boast the best amenities of any mall in the world.
Such was the glamour that greeted the first opening of the Southdale Center in 1956. At that time, the mall was the only public facility with high-tech air conditioning for such a large indoor space.
How the Old Mall Fared
Innovation, however, often spores more innovation, and before long, similar malls started springing up on the Minneapolis landscape. So, shoppers’ traffic was no longer monopolized and ultimately spread to newer shopping malls in the area.
Soon, shops within the old mall started closing down as customer traffic began to tank.
Cash Injection and Top-notch Management to the Rescue
However, Simon Property Group (SPG) has come to the Southdale Center’s rescue. SPG is a mall giant affiliated with several consumer brands and luxury product companies.
So, the developer has gathered hundreds of millions of dollars of financial muscle to bring back the glory days of the Southdale Center.
On a Path to Becoming the Most Luxurious Mall in the US
Imagine visiting the new Southdale Center to shop with your friends and getting an offer to spend the night in a luxury hotel within the facility. Interestingly, it’s not just any hotel, but the Hilton Hotel.
The renovation proposal includes stores for high-end brands like Moncler, Rolex, and Gucci. In addition to the Hilton hotel, the mall will also have a pickleball court.
Reopening Dusty Shops
Old shuttered-up stores within the facility are being cleared out to make space for more innovative attractions for shoppers. For example, Puttshack, the indoor and high-tech mini golf operator, has secured space within the soon-to-be-reopened Southdale Center.
This is an example of the many social changes that have beset the shopping experience in the United States.
Shopping Has Gone Virtual? Not Entirely True
According to a research report published in the Wall Street Journal, shoppers visit malls less often, but when they do, they make high-value purchases.
By implication, despite the further fall in customer traffic to local malls, those with high-end brands as their tenants still get tangible income from these luxury brands.
Brick-and-mortar Malls Are Still Thriving
According to Floris van Dijkum, the managing director at Compass Point Research & Trading, an investment firm, outlier malls are doing well for themselves.
The secret of the profitable malls seems to lie in their active initiative. Floris van Dijkum said, “If you have the capital to reinvest in your malls, that’s how you keep them vibrant and relevant.”
Traffic in a Mall Is a Function of Innovative Facilities
Malls that refuse to improve are unlikely to receive offers from high-end brands to set up shop within their facilities.
So, this is the exact playbook Southdale Center is looking to adopt. They are creating a conducive environment that would motivate shoppers to leave the comforts of their homes and enjoy some outdoor experience.
More People Are Living Around the Mall
In addition, investors in the Southdale Center renovation have observed that the post-pandemic shift to hybrid work has increased the physical presence of people in Edina, the mall’s host community.
Edina is a 52,000-strong town, and the CEO of SPG claims its resurgence is the inspiration behind the revival of America’s oldest shopping mall.
Renovations are Still Ongoing at the Southdale Center
However, as of March, renovations within the 80-acre Southdale facility are in full gear, and the projected glamour is still in the budding stage.
Floors are being ripped out, and the complex is being painted to give it a new feel. All hands are on deck to steer up the sleeping giant again.
Southdale, the Best of Its Kind Across Ages
In its heyday, architectural analysts said the Southdale Center’s original design was the Medina of all malls. In the 1950s, construction of the complex cost a whopping $20 million.
The mall’s original design was tailored to the outdoor theme of European plazas and markets. For example, the Southdale Center’s food court looked like a scene from an Italian outdoor restaurant.
A Mall With the Aura of a European Plaza
Besides the umbrellas that dotted the food court, the center of the mall featured an indoor fish pond and a 21-foot-high bird cage.
The spot next to the bird cage even hosted a live game show hosted by Bob Barker and attended by an estimated 20,000 visitors in 1957.
Nostalgia At the Revival of Southdale’s Glory
Some of the people who caught a glimpse of the first glory of the Southdale Center shared their experiences. Harmony Kaplan was a teenager in 1956 during the mall’s grand opening.
“It was a place where you could go and spend an afternoon—have lunch or meet with friends,” Kaplan said. This is an indication that the mall was a hotbed for youngsters.
Driving Traffic Again to the Old Mall
Likewise, now 76-year-old Mary Rattei said of the first opening of Southdale Center, “I would ride my bike here. It was exciting, it was really a very busy mall…There’s not much going on in the mall now.”
However, SPG is looking to change the narrative of inactivity for the large ghost stores of Southdale Center. As we write this, a lifetime fitness center now occupies a space previously occupied by JCPenney within the facility.
A Fitness Center Already Beckons to Locals
The Life Time fitness center will soon roll out a monthly subscription pickleball court, which SPG hopes will further drive traffic to the mall.
Bahram Akradi, CEO of Life Time, believes that malls should not be limited to shopping alone. He believes such facilities should be the center of commonality.
Luxury Brands Are Lined Up for the Reopening
Nonetheless, there is no taking away from the usual shopping experience from the average mall, irrespective of its myriad side attractions. The new Southdale Center has already secured deals to feature brands like Coach, Max Mara, Burberry, Moncler, Gucci, etcetera.
There has been a spike in online shopping and a commensurate drop in foot traffic to brick-and-mortar stores recently. recently
Buy Online or Visit an Actual Store?
The new dynamic of retail sales is causing speculators to wonder how stores in the renovated mall aim to make sales.
The reassuring theory is embedded in consumers’ shopping behaviors. The average shopper would have no problem placing an online order for a cheap trinket. But when buying an expensive Gucci bag, the prospector is more likely to examine the product before parting with their money.
Not a Good Time to Be a Mall Manager
In recent times, big-time operators of mall chains have found many of their outlets in troubled waters. For example, Macy’s is seriously considering shutting off about 150 of its operational locations.
Sears is also plagued with a similar challenge, which largely involves the lack of the necessary capital required to attract lucrative brands to their facilities.
SPG’s Ready To Ride the Waves
However, SPG seems to have a wider operational base. So far, SPG manages 83 enclosed properties in the US, making them the largest mall operators in the country.
According to CEO David Simon, SPG’s goal is to invest in lucrative properties like Southdale Center. He adds, “Malls are resilient as hell. There are very few products in real estate that have that kind of longevity and staying power.”