Work on both is expected to be completed next year and retailers in the area expect greater foot traffic.
And it seems trade in the suburb has benefited from the traffic, parking and pedestrian issues besetting central Dunedin.
South Dunedin Business Association president Craig Waterhouse said retailers he had spoken to recently had all commented they were "always busy, with business steady".
South Dunedin business had well and truly returned to levels of trade seen before the Covid pandemic arrived in March 2020, Mr Waterhouse said.
"We definitely declined due to Covid with customers wary of the close proximity required to assess their needs, but we’ve rebounded and are probably now busier than pre-Covid," Mrs Tipler said.
"There are a lot of people commenting about how difficult it is getting around Dunedin and that it’s easier to find parks and walk around the streets here in South Dunedin.
"We’re getting people from North Dunedin and Mosgiel coming in to shop and go to the bank," Mrs Tipler said.
"The opening of Kmart and where Wolfenden & Russell was will also bring more people in to the area, and that’s good for retail.
"People are liking the changes to South Dunedin cafes and shops, and everything is a little bit nicer. There’s a definite rise in standard," she said.
Luma Fashion owner Karen McDonnell was another who said business had returned to pre-Covid levels.
"Covid had a major effect but after a lot of hard work, we have bounced back," she said.
While Luma had a strong base of customers from throughout New Zealand, the services offered in South Dunedin meant people "came from all over" — it was easy for people to browse, they had the time and there was plenty of parking, she said.
Business had certainly rebounded back from Covid, where he had taken a "glass half-full approach" and was quite aggressive in his marketing, which meant he retained a regular client base "from all over, including Southland and Canterbury", Mr Campbell said.
For many, his outlet was a "destination shop", he said.
Mr Campbell was another who noted the "good retail, food and service options in South Dunedin brought people in".
"And the banks in South Dunedin have their own carparks."
The completion of Kmart, in the block between McBride St and Macandrew Rd, would see him "embracing the challenge of competition", he said.
Completion of the Kmart build is set for 2024, while Justin Stott, the property investor who is redeveloping the Wolfenden & Russell site, said he was hopeful the new combined retail and office space in King Edward St would be open by Christmas next year.
