Southtown Center
A regional shopping center in Bloomington, Minnesota, serving the southern Twin Cities metropolitan area.
Last updated November 4, 2026
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Overview
Southtown Center, commonly called Southtown, is a regional shopping center in Bloomington, Minnesota, a suburb of Minneapolis and part of the Twin Cities metropolitan area. The property contains approximately 534,650 square feet of retail space and has historically combined partially enclosed mall areas with predominantly open-air buildings. It has accommodated department stores, specialty retailers, entertainment venues, restaurants, services, and other consumer-oriented businesses. The center opened on November 3, 1960, becoming Bloomington’s first regional shopping center. It was developed by Bloomington-based construction and development company Kraus-Anderson on nearly 37 acres that had previously been described as cow pasture. Lloyd Engelsma, Kraus-Anderson’s founder, served as project manager. Construction encountered labor strikes and difficult weather, but the center opened with Montgomery Ward as its principal and only anchor. Montgomery Ward occupied a roughly 188,050-square-foot building that was then the retailer’s largest department-store location. Southtown expanded in the early 1960s. A 43,000-square-foot AMF bowling center was added in 1963 and remained an important entertainment component of the property. In 1964, Mann Theatres opened a cinema attached to the shopping center, reportedly the first movie theater attached to a shopping center in the Twin Cities. The theater was remodeled in 1980 and demolished in 1995 to permit additional retail development. Southtown also hosted Minnesota’s first ShowBiz Pizza Place, which opened in late 1981. The center’s tenant mix changed substantially after the decline and closure of Montgomery Ward. In 1998, Montgomery Ward announced that it would close the Southtown store among a group of underperforming locations. Herberger’s subsequently took space in the former department-store building, while Toys “R” Us leased the remaining portion. Toys “R” Us occupied approximately 44,548 square feet before closing in 2015 after its lease expired. Herberger’s closed in August 2018 after its parent company, The Bon-Ton Stores, entered liquidation. Southtown has also been shaped by municipal planning and transportation decisions. In 2014 and 2015, Bloomington considered rezoning portions of the property to support more pedestrian-oriented, transit-supportive, and mixed-use development. Kraus-Anderson and some local customers opposed aspects of the proposal, arguing that redevelopment could undermine the center’s existing character and viability. The city council approved the rezoning in July 2015. The framework allowed for future multistory mixed-use buildings, a new street grid, and preservation of a three-acre southeast portion for higher-intensity development. The Metro Orange Line runs along Knox Avenue next to the property. A design dispute during planning concerned whether the transitway should pass in a trench beneath Interstate 494 or follow a loop around a restaurant to preserve future development opportunities. The loop configuration was ultimately constructed and opened in 2021. Tenant turnover continued in the late 2010s and 2020s. Hancock Fabrics closed its Southtown location in 2016 during the company’s bankruptcy. Bed Bath & Beyond announced the closure of its Southtown store in 2023 as part of a wider reduction of its store base. Kraus-Anderson proposed a Hy-Vee grocery and liquor store for the property in 2021, but withdrew the proposal after Hy-Vee changed its Twin Cities expansion plans. The former Herberger’s and Toys “R” Us buildings were demolished in January 2024. Later in 2024, plans were announced for a two-story Dick’s House of Sport totaling approximately 120,000 square feet and including an 18,000-square-foot outdoor athletic field. Slumberland Furniture also began relocating its Bloomington operation to the former Bed Bath & Beyond building. Southtown remains an active shopping center with a long-standing regional identity, a substantial tenant base, and a continuing transition toward updated retail, entertainment, transportation, and potentially mixed-use functions. Its cultural footprint also extends beyond retail: the Minneapolis-area band The Hold Steady referenced the center in the song “Southtown Girls,” whose lyrics include directions to the property.
History
Southtown Center opened in Bloomington, Minnesota, on November 3, 1960. Developed by Kraus-Anderson on nearly 37 acres, it was Bloomington’s first regional shopping center and was built at a prominent intersection near Interstate 494. The project was managed by Lloyd Engelsma, founder of Kraus-Anderson. Construction was delayed by three labor strikes and unfavorable weather, but the completed center opened with Montgomery Ward as its sole anchor. Montgomery Ward occupied approximately 188,050 square feet, making the building the company’s largest department-store location at the time. The property expanded in stages. In 1963, a 43,000-square-foot AMF bowling center was built on the north side of the site. The facility remained in operation and became one of the center’s most durable entertainment uses. In 1964, Mann Theatres opened a cinema attached to the shopping center. It was described as the first movie theater attached to a shopping center in the Twin Cities. The theater was remodeled in 1980 and ultimately demolished in 1995, when its site was repurposed for additional retail space. Southtown later became home to Minnesota’s first ShowBiz Pizza Place, which opened in late 1981. For much of the late twentieth century, Montgomery Ward was Southtown’s dominant tenant. That role ended in 1998, when Montgomery Ward announced the closure of nine underperforming stores, including its Southtown location. Herberger’s acquired or leased space in several former Montgomery Ward properties in the Twin Cities and occupied part of the vacant Southtown building. Toys “R” Us leased the remaining portion. Toys “R” Us closed in April 2015 after a 26-year lease, while Herberger’s remained until 2018. Southtown’s future became a matter of public debate in the 2010s. Bloomington proposed rezoning parts of the center in order to make denser, more walkable, and more transit-oriented redevelopment possible. Kraus-Anderson objected to the proposal, warning that it could threaten the center’s existing form and customer appeal. Local residents and customers also organized opposition through a website supporting the preservation of Southtown’s established character. Despite these objections, the city council approved the rezoning in July 2015. The approved framework allowed potential multistory mixed-use development and a new street network while reserving a three-acre southeast section for higher-density construction. Transportation planning was closely connected to the rezoning debate. The Metro Orange Line was planned along Knox Avenue beside the property. Earlier concepts called for a trench extending from Knox Avenue and passing beneath Interstate 494. Kraus-Anderson supported a loop around a restaurant, which would preserve more flexibility for future development. The loop configuration was ultimately built, and the Orange Line opened in 2021. Tenant changes continued after the rezoning. Hancock Fabrics closed its Southtown store in 2016 as the company entered bankruptcy. Herberger’s closed on August 29, 2018, following the liquidation of parent company The Bon-Ton Stores. Southtown nevertheless maintained a reported occupancy rate of 99 percent for many years. In 2021, Kraus-Anderson proposed a Hy-Vee grocery and liquor store, but the plan was withdrawn several months later after Hy-Vee changed its Twin Cities expansion strategy. Bed Bath & Beyond announced the closure of its Southtown location in 2023 as part of a larger store-reduction program. The property entered another redevelopment phase in the 2020s. The former Herberger’s and Toys “R” Us buildings were demolished in January 2024. Later that year, plans were announced for a Dick’s House of Sport building with approximately 120,000 square feet across two stories, an 18,000-square-foot outdoor athletic field, landscaping, and sidewalk improvements. A later phase was also associated with medical-office development. Slumberland Furniture began relocating its Bloomington store from a site west of Southtown into the former Bed Bath & Beyond building. With approximately 534,650 square feet of retail space, Southtown has historically housed about 38 retail tenants and has maintained a hybrid physical format: some partially enclosed mall space alongside open-air buildings and freestanding structures. Its anchor and major tenant history includes Montgomery Ward, Herberger’s, Toys “R” Us, Kohl’s, TJ Maxx, AMF Bowling Centers, and other retail and service businesses. The center has also acquired a local cultural reference through The Hold Steady song “Southtown Girls,” which mentions directions to Southtown Center. The property remains active while adapting its tenant mix and built environment to changing retail, entertainment, transit, and mixed-use development patterns.
- 2024
Former anchor buildings demolished
[1]The former Herberger’s and Toys “R” Us buildings were demolished in January.
- 2024
Dick’s House of Sport plans announced
[1]Plans were announced for a two-story Dick’s House of Sport with an outdoor athletic field and broader site improvements.
- 2023
Bed Bath & Beyond closure announced
[1]Bed Bath & Beyond announced that its Southtown store would close as part of a wider store-reduction program.
- 2021
Metro Orange Line opens nearby
[1]The Metro Orange Line opened along Knox Avenue adjacent to Southtown.
- 2021
Hy-Vee proposal withdrawn
[1]A proposed Hy-Vee grocery and liquor store was withdrawn after Hy-Vee revised its plans for Twin Cities expansion.
- 2018
Herberger’s closes
[1]Herberger’s closed its Southtown store on August 29 after The Bon-Ton Stores entered liquidation.
- 2016
Hancock Fabrics closes
[1]The Southtown Hancock Fabrics location closed during the retailer’s bankruptcy.
- 2015
Rezoning approved
[1]Bloomington approved rezoning intended to support denser, more walkable, and more transit-oriented development around the center.
- 1998
Montgomery Ward announces closure
[1]Montgomery Ward announced that its Southtown store would close as part of a wider group of underperforming locations.
- 1995
Southtown cinema demolished
[1]The former cinema was demolished to create space for additional retail development.
Products and positioning
A long-established regional and community-oriented shopping center serving Bloomington and the southern Twin Cities, combining open-air and partially enclosed retail space with entertainment, dining, services, and transit access.
General merchandise · 1960
Retail and department-store merchandise
Southtown’s principal offering is a multi-tenant retail environment rather than a proprietary product line. Over time, its stores have sold apparel, accessories, home goods, toys, housewares, furniture, arts and crafts supplies, sporting goods, groceries, liquor, and other general merchandise.
Entertainment · 1963
AMF bowling center
The AMF bowling center was added in 1963 as a major entertainment component of Southtown. The bowling facility has remained associated with the property across multiple changes in the surrounding retail tenant mix.
Sporting goods and experiential retail · 2024
Dick’s House of Sport
Plans announced in 2024 called for a two-story Dick’s House of Sport of approximately 120,000 square feet, including an 18,000-square-foot outdoor athletic field. The proposal is intended to add a large sporting-goods and experiential retail use to the redeveloping center.
Brand decisions
2024
Dick’s House of Sport redevelopment planProduct launchBackground
Following the departure of major former tenants and demolition of the Herberger’s and Toys “R” Us buildings, Southtown required new uses to renew a significant part of its retail footprint.
Action taken
Plans were announced for a two-story Dick’s House of Sport of approximately 120,000 square feet, with an 18,000-square-foot outdoor athletic field, landscaping, sidewalks, and a possible future medical-office phase.
Aftermath
The plan signaled a shift toward experiential sporting-goods retail and broader site improvements, although the available material does not establish a completed opening date.
2024
Former anchor buildings removedStrategyBackground
The former Herberger’s and Toys “R” Us buildings had become vacant after the closures of their respective tenants.
Action taken
Both buildings were demolished in January 2024 to facilitate future redevelopment of the property.
Aftermath
The cleared sites became part of the center’s continuing repositioning, including the proposed Dick’s House of Sport project.
2021
Hy-Vee grocery-store proposal withdrawnStrategyBackground
Kraus-Anderson proposed a Hy-Vee grocery and liquor store for part of the Southtown property as the center sought additional uses and replacement tenants.
Action taken
The proposal was withdrawn several months later after Hy-Vee changed its plans for expansion into the Twin Cities.
Aftermath
The site continued through a broader redevelopment and tenant-repositioning process, including demolition of former anchor buildings and later plans for Dick’s House of Sport.
2015
Southtown rezoning and redevelopment frameworkStrategyBackground
Bloomington considered rezoning portions of Southtown to encourage pedestrian-oriented, transit-supportive, and potentially mixed-use development. Kraus-Anderson and some local customers opposed aspects of the proposal because of concerns about the center’s existing character and long-term viability.
Action taken
The city council approved the rezoning in July 2015. The framework allowed a new street grid, possible multistory mixed-use buildings, and a three-acre southeast area reserved for higher-intensity development.
Aftermath
The rezoning became the planning basis for later transportation and property redevelopment discussions.
Recent events
- 2024
Former Herberger’s and Toys “R” Us buildings demolished[1]
Other
The vacant former department-store and toy-store buildings were demolished as part of the property’s continuing redevelopment and tenant-repositioning process.
- 2024
Dick’s House of Sport plans announced for Southtown[1]
Product launch
Plans were announced for a two-story Dick’s House of Sport of approximately 120,000 square feet, including an outdoor athletic field and site improvements.
- 2023
Bed Bath & Beyond announces Southtown closure[1]
Bankruptcy · Other
Bed Bath & Beyond announced the closure of its Southtown store as part of a broader program to shut approximately 150 locations amid financial difficulties.
- 2021
Metro Orange Line opens near Southtown Center[1]
Other
The Metro Orange Line opened along Knox Avenue adjacent to Southtown, using a loop design that preserved development options around the shopping center.
- 2021
Hy-Vee proposal for Southtown is withdrawn[1]
Other
Kraus-Anderson withdrew a proposal for a Hy-Vee grocery and liquor store after Hy-Vee revised its plans for Twin Cities expansion.
- 2018
Herberger’s announces closure[1]
Bankruptcy · Other
Herberger’s announced that its Southtown store would close after parent company The Bon-Ton Stores entered a liquidation process. The store closed on August 29, 2018.
- 2016
Hancock Fabrics closes Southtown location during bankruptcy[1]
Bankruptcy · Other
The Southtown Hancock Fabrics store was among three Minnesota locations closed as the company entered bankruptcy proceedings.
- 2015
Bloomington approves rezoning framework affecting Southtown Center[1]
Regulation · Other
Bloomington’s city council approved rezoning intended to encourage pedestrian- and transit-supportive development, including possible mixed-use buildings and a new street grid around Southtown.
- 2015
Toys “R” Us closes at Southtown Center[1]
Other
The Southtown Toys “R” Us store closed after its 26-year lease expired.
Sources2 sources
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