The Shoppes at South Hills
A former enclosed shopping mall in Poughkeepsie, New York, redeveloped as an outdoor strip-shopping center.
Last updated August 25, 2026
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Overview
The Shoppes at South Hills is a retail property on U.S. Route 9 in Poughkeepsie, New York. It began in 1974 as South Hills Mall, the first enclosed shopping mall in Poughkeepsie and the second in Dutchess County. The original approximately 675,000-square-foot mall was anchored by Sears and Kmart and contained dozens of smaller retailers, restaurants, service businesses, and an indoor movie theater. During its early years, South Hills became a major regional shopping destination and contributed to the decline of established downtown retail in Poughkeepsie. The property’s competitive position changed after the nearby Poughkeepsie Galleria opened in 1987. South Hills initially continued to operate alongside the newer mall, but its decline accelerated during the 1990s. Hess’s closed in 1991, Sears relocated to the Galleria, and several replacement and secondary tenants—including Burlington Coat Factory, Phar-Mor-related operations, Service Merchandise, Media Play, Old Navy, OfficeMax, Discovery Zone, and Bob’s Stores—failed to restore the enclosed mall’s earlier vitality. Additional store closures in the mid-2000s left large portions of the center vacant, although ShopRite and several other anchor or large-format tenants continued operating. By the end of 2007, almost all of the smaller interior stores had closed. The remaining revenue sources included Kmart, Burlington Coat Factory, ShopRite, Silver Cinemas, and other specialized businesses. In July 2008, demolition began as part of a fundamental redevelopment rather than a simple refurbishment. The enclosed mall was removed and replaced by an outdoor strip-center format. The property was rebranded as The Shoppes at South Hills, with construction substantially completed in 2009. Christmas Tree Shops and Bob’s Discount Furniture were among the early tenants in the new format, followed later by Hobby Lobby, Pet Goods, Ashley Furniture, Orangetheory Fitness, and Peachwave. The redevelopment did not eliminate all tenant turnover. Silver Cinemas ended operations in February 2014 and later returned under the Empire Cinemas name, which closed in February 2019. Kmart, one of the original anchors, closed on July 31, 2016 after Sears Holdings announced the location as part of a broader store-closure program. The center remains an outdoor retail property operated by DLC Management Corporation, with its identity now tied to a collection of retailers rather than to the former enclosed mall structure.
History
South Hills Mall opened in 1974 on U.S. Route 9 in Poughkeepsie, New York. It was the first enclosed shopping mall in the city and followed Dutchess Mall as the second enclosed mall in Dutchess County. The approximately 675,000-square-foot center opened with Sears and Kmart at opposite ends, alongside a broad selection of smaller shops such as Record World, Walden Books, NY Piano and Organ, Spencer Gifts, and Endicott Johnson Shoes. Its arrival strengthened suburban retail and helped shift shopping activity away from downtown Poughkeepsie; prominent downtown retailer Luckey Platt & Co. closed in 1981. The mall expanded its entertainment and dining offer during the 1980s. An eight-screen cinema opened in 1984 in space previously used by Park Place Roller Rink. A 1985 expansion added a central food court with Burger King, a sandwich outlet, and a pizza restaurant, as well as a Hess’s department store. The center was a leading local retail destination until the competitive environment changed when the nearby, larger Poughkeepsie Galleria opened in 1987. South Hills and the Galleria coexisted for several years, but the older property weakened during the 1990s. Hess’s departed in 1991, while Sears moved to the Galleria. Burlington Coat Factory took over the Hess’s space, and the former Sears area was divided among other uses, including a supermarket. Service Merchandise arrived in 1995 after leaving Dutchess Mall, but the chain later failed. Ownership also changed several times. Sarakreek Holdings NV controlled the mall during the 1990s and pursued a big-box-oriented revival involving retailers such as Media Play, Old Navy, OfficeMax, Discovery Zone, and Bob’s Stores. The property later passed to the locally based Dagar Group. The revival was short-lived. Smaller tenants continued to leave, several replacement businesses occupied units only temporarily, and the closures of Media Play, OfficeMax, and Price Chopper in 2006 further reduced the mall’s tenant base. ShopRite replaced Price Chopper and remained a comparatively successful use. By December 31, 2007, nearly all smaller stores had closed, leaving a small group of anchors and specialty tenants as the principal sources of income. Demolition began in July 2008 while several major tenants remained open. The project replaced the interior mall with an outdoor strip-center layout and introduced the name The Shoppes at South Hills. The rebuilt property was completed in 2009, with Christmas Tree Shops and Bob’s Discount Furniture among the early occupants. Later additions included Hobby Lobby and Pet Goods in 2012, Ashley Furniture in 2014, and Orangetheory Fitness and Peachwave in 2015. The cinema operation changed from Silver Cinemas to Empire Cinemas before closing in 2019. Kmart, one of the original anchors, closed in 2016 after a Sears Holdings closure announcement. DLC Management Corporation has owned and operated the property since 2015. The site therefore represents a transition from a dominant enclosed regional mall to a more flexible open-air retail center whose performance depends on a mix of large-format stores, essential retail, services, and restaurants.
- 2016
Kmart closes
[1]The former mall’s remaining original Kmart anchor shuts after a liquidation sale.
- 2009
Redeveloped center reopens
[1]The property reopens under the name The Shoppes at South Hills.
- 2008
Enclosed mall demolition begins
[1]The property begins conversion from an enclosed mall to an open-air retail center.
- 1991
Hess’s closes and Sears relocates
[1]The departure of Hess’s and relocation of Sears mark a major deterioration in the original anchor structure.
- 1987
Poughkeepsie Galleria opens nearby
[1]The opening of a larger adjacent competitor begins a long-term shift in the local retail balance.
- 1985
Central expansion adds food court
[1]The mall expands with a food court and a Hess’s department store.
- 1984
Eight-screen cinema opens
[1]A movie theater opens in the former Park Place Roller Rink space.
- 1974
South Hills Mall opens
[1]The first enclosed mall in Poughkeepsie opens with Sears and Kmart as its principal anchors.
Products and positioning
A community-oriented open-air shopping center serving Poughkeepsie and the surrounding Hudson Valley market, following its conversion from a declining enclosed mall.
Enclosed shopping mall · 1974
Enclosed South Hills Mall
The original 1974 retail complex was an approximately 675,000-square-foot enclosed mall with Sears and Kmart anchors, numerous specialty retailers, a cinema, food court, and department-store space. It served as a major suburban shopping destination before losing traffic to the nearby Poughkeepsie Galleria and being demolished during the 2008 redevelopment.
Open-air shopping center · 2009
The Shoppes at South Hills
The current open-air format replaced the enclosed mall after demolition and reconstruction. It is designed for larger-format and service-oriented tenants, including furniture, supermarket, home, pet, fitness, and specialty retail uses. The center reopened in 2009 and is owned and operated by DLC Management Corporation.
Brand decisions
2016
Kmart closureOtherBackground
Sears Holdings announced a nationwide store-closure program that included the Kmart at The Shoppes at South Hills.
Action taken
Kmart conducted a liquidation sale and permanently closed on July 31, 2016.
Aftermath
The closure removed one of the original South Hills Mall anchors from the property’s tenant mix.
2008
Convert the enclosed mall into an open-air centerStrategyBackground
Competition from the nearby Poughkeepsie Galleria, extensive vacancies, and the loss of smaller tenants had left the enclosed mall in sustained decline.
Action taken
The owner demolished the enclosed structure and rebuilt the property as a strip-shopping center while several large tenants continued operating during construction.
Aftermath
The redeveloped property reopened under the Shoppes at South Hills name in 2009 and attracted new large-format and service tenants.
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