Mar 27, 2024 - News

Southdale, Galleria, do battle for luxury retailers

Illustration of a hand holding gold shopping bags.

Illustration: Allie Carl/Axios

The landlords of next-door malls Southdale and Galleria are going to battle over glitz and glamor.

Why it matters: We will soon find out if there's enough demand for $120 yoga pants, $3,000 purses, and $6,000 sofas to support two luxury malls in Edina.

State of play: Galleria has long been the high-end retail mecca of the Twin Cities. But Simon Properties has been pumping big bucks into making Southdale into an upscale mall, a transformation that will be capped off later this year when it opens a new luxury wing where Gucci and Moncler are set to open their first Minnesota stores.

  • Southdale has already poached Lululemon and RH Gallery from Galleria, and, according to Twin Cities Business, Kate Spade New York and Tory Burch will also make the move.
  • Plus, Life Time opened its highest-end health club at the mall and upscale grocer Kowalski's will open this spring.

The other side: Locally owned Galleria isn't waving the white flag. Rachel Oelke, a spokesperson for property manager Hines, told Axios in an email that it will begin construction this spring on a redevelopment of the space left behind by Gabbert's in 2020.

  • Furniture store Arhaus is doubling its space and the mall has brought in jewelry store JB Hudson, menswear retailer J.H. & Sons, and cooler brand Yeti. Oelke said more store openings are coming.

Between the lines: Top-tier malls have surpassed 2019 sales levels, according to the Wall Street Journal. Shoppers are spending less time in stores, but they're more willing to spend on big-ticket items.

The bottom line: The Southdale area is surrounded by some of the wealthiest neighborhoods in the state and there's a pipeline of luxury housing in the works in the area.

  • It's possible there's no loser in this battle.

Editor's note: This story has been corrected to show Kate Spade New York and Tory Burch are moving to Southdale from Galleria, not Watches of Switzerland/Rolex.

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