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Castleton Square

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An enclosed shopping mall in Indianapolis, Indiana, and the largest shopping mall in the state.

Last updated August 24, 2026

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Overview

Castleton Square is an enclosed regional shopping mall in the Castleton neighborhood on the northeast side of Indianapolis, Indiana. The property was developed through a joint venture between the Edward J. DeBartolo Corporation and Homart Development Company, the shopping-center development subsidiary of Sears. Development began in 1971, following research indicating that the northeastern Indianapolis suburbs would experience substantial residential growth and that the area could support a major regional retail destination. The mall opened in 1972 and has remained Indiana's largest mall since its construction. The original center was designed as a Y-shaped enclosed mall anchored by Sears, JCPenney, Lazarus, and Woolworth. Its initial tenant roster also included Kroger, a three-screen cinema, and a range of specialty retailers such as Hickory Farms, Kinney Shoes, Zales Jewelers, Waldenbooks, Orange Julius, and Robert Hall Clothes. When the first stores opened in August 1972 and the formal opening ceremony took place on September 13, the property measured approximately 1.1 million square feet and provided parking for about 7,050 vehicles. Its early design emphasized the interior mall experience, with skylights, terrazzo floors, tropical plantings, chandeliers, circular seating, and a large center-court fountain. During the late 1970s and 1980s, Castleton Square expanded its entertainment and retail mix while adapting to changing tenant requirements. General Cinema added a second cinema in 1976. Kroger moved to a larger nearby location in 1979, and its former mall space was subdivided for additional retail use. Woolworth closed in 1982, after which the space was temporarily used by local automobile dealers and then redeveloped for Kohl's. A major renovation announced in 1983 replaced the center-court fountain with a performance stage, updated lighting and seating, improved planters, heightened department-store ceilings, and a customer-service kiosk. The mall added significant new anchors in 1990, when L. S. Ayres and Montgomery Ward opened. Another major transformation followed after Simon Property Group merged with DeBartolo Corporation in 1996. Kohl's left for a larger store in 1997, and its former space was replaced by a new wing containing a food court and a Galyan's sporting-goods store. The project also upgraded entrances, skylights, landscaping, restrooms, and specialty-retail areas. Von Maur took over the former Montgomery Ward location in 1998, while Galyan's became the first store in that chain to operate inside a shopping mall. In the 2000s, the tenant mix continued to evolve through acquisitions, rebrandings, and redevelopment. Lazarus became Lazarus-Macy's in 2003 and was later converted to Macy's. Galyan's was sold to Dick's Sporting Goods in 2004. After Federated Department Stores acquired the May Department Stores Company in 2006, the L. S. Ayres store was closed rather than converted to Macy's. Its former building was demolished and replaced with an outdoor-oriented concourse containing retailers, restaurants, and an AMC multiplex. Borders Books & Music later closed, and its space was converted to Forever 21. Sears, one of the mall's original anchors, closed in September 2018 as part of a nationwide round of store closures. The former Sears building subsequently became a redevelopment opportunity. Hobby Lobby opened in part of the space in 2025, and Primark announced a planned 30,000-square-foot store for the remaining area, opening to the public on July 23, 2026 according to the cited reference material. The property also underwent a remodeling program in early 2025 involving new flooring, paint, and signage. Castleton Square continues to operate as a major multi-anchor shopping center with more than 130 inline stores and a broad mix of apparel, specialty retail, dining, entertainment, and services.

History

Castleton Square was developed during a period of rapid suburban expansion in the Indianapolis metropolitan area. The Edward J. DeBartolo Corporation partnered with Homart Development Company, a Sears development subsidiary, to create a large enclosed shopping center on 82nd Street near Interstate 465. DeBartolo announced the project in January 1971, and construction began soon afterward. The location was selected because demographic studies pointed to continued residential growth on Indianapolis's northeast side, while Sears research identified the area as a suitable market for a major department-store complex. Indiana transportation authorities also expanded 82nd Street to accommodate anticipated mall traffic. The original plan called for a Y-shaped enclosed center anchored by Sears, JCPenney, and Rike's. Federated Department Stores, which owned Rike's, ultimately substituted Lazarus as the third major anchor. Sears opened in August 1972, followed by Kroger and approximately twenty other shops. Formal opening ceremonies took place on September 13, 1972, with Indianapolis mayor Richard Lugar participating in the ribbon cutting. At opening, the mall covered roughly 1,116,160 square feet, making it the largest shopping mall in Indiana. JCPenney opened in January 1973, Woolworth followed in March, and Lazarus opened in August as its first Indiana store. The Lazarus building occupied three levels and included a restaurant overlooking the mall's center court. The early property combined department stores, specialty retail, food, and entertainment. Its interior featured a large fountain, chandeliers, skylights, tropical plants, terrazzo flooring, and extensive circular seating. A second cinema was added by General Cinema in 1976. Kroger left in 1979 for a larger store elsewhere on 82nd Street, and its former space was divided into additional mall units. Woolworth closed in April 1982 after poor performance. The former Woolworth area was temporarily used by local automobile dealers before being converted for Kohl's, which entered the Indianapolis market through a group of stores opened in former Woolworth properties. A substantial renovation was announced in 1983 for the mall's tenth anniversary. The project replaced the center-court fountain with a performance stage, updated planters and benches, improved lighting, raised ceilings in the department stores, and introduced a customer-service kiosk. The anniversary program included performances by more than fifty circus performers, illustrating the mall's role as both a retail facility and a community-oriented entertainment venue. The next major expansion occurred in 1990. L. S. Ayres added a 150,000-square-foot store on the mall's south side, targeting shoppers from communities northeast of Indianapolis such as Anderson and Muncie. Montgomery Ward opened a 108,000-square-foot store later that year near the JCPenney wing. In 1992, Best Buy opened next to the mall. These additions broadened the property's appeal beyond its original department-store configuration. Simon Property Group's merger with the DeBartolo Corporation in 1996 changed the ownership and management context. Kohl's moved to a larger location in the Geist area in 1997, and Simon proposed replacing its former space with a new wing. The resulting project included a food court, Galyan's sporting-goods store, upgraded entrances and skylights, improved landscaping, larger restrooms, and additional kiosk space. Montgomery Ward announced the closure of its Castleton Square store in 1997. Simon sought to acquire the property for Lord & Taylor, but Von Maur won the bidding and opened there in June 1998. Galyan's opened during the same period, becoming the chain's first mall-based store, and the food court later opened with fifteen restaurants and a garden-themed design. The property continued to change in the twenty-first century. Costco opened north of the mall in 2002. Lazarus adopted Lazarus-Macy's branding in 2003 and was later converted to Macy's. Galyan's became Dick's Sporting Goods after the chain was acquired in 2004. When Federated Department Stores acquired the May Department Stores Company in 2006, L. S. Ayres locations were closed while selected former Lazarus stores were retained under Macy's. The former Ayres building at Castleton Square was demolished a year later, and its site became an outdoor concourse featuring Borders Books & Music, AMC Theatres, Johnny Rockets, Stir Crazy, Cold Stone Creamery, and H&M. Borders closed in 2011 and was replaced by Forever 21. McAlister's Deli opened in 2014. Sears closed in September 2018 during a nationwide series of closures. The mall remained the largest in Indiana, with more than 130 inline stores as of 2019. A remodeling program in early 2025 updated flooring, paint, and signage. The former Sears space began a new phase of reuse when Hobby Lobby occupied part of the building, while Primark was announced for an additional 30,000-square-foot portion. The cited reference material states that Primark opened to the public on July 23, 2026, as its first Indiana location. Castleton Square remains an active regional shopping center managed and owned by Simon Property Group.

  • 2026

    Primark opens

    [1]

    The reference material states that Primark opened a 30,000-square-foot store on July 23, 2026, described as the retailer's first Indiana location.

  • 2025

    Interior remodeling and former Sears reuse

    [1]

    The mall updated flooring, paint, and signage, while Hobby Lobby opened in part of the former Sears building.

  • 2018

    Sears closes

    [1]

    The original Sears anchor closed in September as part of a nationwide closure program.

  • 2007

    Former Ayres site redeveloped

    [1]

    The former L. S. Ayres building was demolished and replaced with an outdoor retail, dining, and entertainment concourse.

  • 2003

    Lazarus adopts Macy's branding

    [1]

    The Lazarus anchor became Lazarus-Macy's and was subsequently converted to Macy's.

  • 1998

    Food court and Galyan's wing completed

    [1]

    Von Maur opened in the former Montgomery Ward space, Galyan's opened in the new wing, and a fifteen-restaurant food court was completed.

  • 1996

    Simon and DeBartolo merge

    [1]

    Simon Property Group merged with the Edward J. DeBartolo Corporation, placing Castleton Square within Simon's ownership and management portfolio.

  • 1990

    L. S. Ayres and Montgomery Ward join the property

    [1]

    Two new department-store anchors expanded the mall's regional draw and retail capacity.

  • 1983

    Tenth-anniversary renovation

    [1]

    The mall modernized its interior, replaced the fountain with a performance stage, and introduced Kohl's in the former Woolworth space.

  • 1976

    Second cinema added

    [1]

    General Cinema expanded the mall's entertainment offer with a second cinema in the parking area northeast of Sears.

Products and positioning

A large, established regional shopping destination serving Indianapolis and northeastern Indiana, positioned around department stores, national specialty retailers, dining, entertainment, and convenient suburban access.

  • Shopping center · 1972

    Enclosed regional shopping mall

    Castleton Square's principal offering is a large enclosed retail environment serving the Indianapolis metropolitan area and northeastern Indiana. The center combines department stores, specialty shops, dining, services, entertainment, and seasonal or community programming. Its interior configuration, multiple anchor wings, food court, and adjacent outdoor concourse allow it to function as a broad regional destination rather than a single-category retail facility.

  • Dining · 1998

    Food court

    The food court was added during the late-1990s expansion associated with the former Kohl's site. It opened with fifteen restaurants and a garden-oriented decorative concept, adding a centralized dining offer to the mall's department-store and specialty-retail mix.

  • Mixed-use retail · 2007

    Outdoor retail and entertainment concourse

    The former L. S. Ayres site was replaced with an outdoor-oriented concourse after the department store was demolished. The development originally included Borders Books & Music, AMC Theatres, Johnny Rockets, Stir Crazy, Cold Stone Creamery, and H&M. Later tenant changes included the replacement of Borders by Forever 21.

Marketing campaigns

  • 2018Macy's Growth 50

    United States

    Macy's selected its Castleton Square store for the Growth 50 initiative, which aimed to add new shopper-oriented options at selected profitable locations.

    Outcome. The store was identified as one of the participating locations; the available reference does not specify the complete set of initiatives implemented at the site.

Brand decisions

  • 2025

    Property refresh and anchor-space reuseStrategy

    Background

    The mall continued updating its physical environment and reusing space left by the closure of Sears.

    Action taken

    New flooring, paint, and signage were installed, and Hobby Lobby opened in part of the former Sears location.

    Aftermath

    The former Sears building entered a multi-tenant reuse phase, with Primark announced for the remaining available portion.

  • 2018

    Response to Sears closureStrategy

    Background

    Sears announced the closure of its Castleton Square store during a nationwide reduction of its store base.

    Action taken

    The anchor closed in September, leaving the former Sears building available for later redevelopment.

    Aftermath

    Hobby Lobby subsequently occupied part of the building, while Primark was announced for another portion.

  • 2006

    Redevelopment after L. S. Ayres closureStrategy

    Background

    Federated Department Stores' acquisition of the May Department Stores Company led to the closure of the L. S. Ayres anchor rather than its conversion to Macy's.

    Action taken

    The L. S. Ayres building was closed and later demolished, with the site redeveloped as an outdoor retail, restaurant, and entertainment concourse.

    Aftermath

    The property gained an AMC multiplex, restaurants, and specialty retailers, creating a more mixed-format component of the mall.

  • 1997

    Redevelopment of former Kohl's spaceStrategy

    Background

    Kohl's moved to a larger store in the Geist neighborhood, leaving a major anchor space available for repositioning.

    Action taken

    Simon announced a new wing with a food court and Galyan's, together with upgrades to entrances, skylights, landscaping, kiosks, and restrooms.

    Aftermath

    The project expanded the mall's dining, sporting-goods, and specialty-retail offer and was substantially in operation by 1998.

  • 1983

    Major interior renovationStrategy

    Background

    The mall used its tenth anniversary to refresh an aging interior and improve the customer experience.

    Action taken

    Management replaced the center-court fountain with a performance stage, updated planters and benches, improved lighting, raised department-store ceilings, and added a customer-service kiosk.

    Aftermath

    The renovation was paired with the opening of Kohl's in the former Woolworth space and anniversary entertainment programming.

Sources2 sources

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