Madonna Plaza and SLO Promenade shopping plazas

Note: This plaza has a drug problem in recent years. There was a really smelly lady sleeping in the bathroom at Kohl's. Update 2024: Now that the Boise law of 2018 has been overturned, people are being arrested finally. I saw the police arrest two men on bikes doing a drug deal in broad daylight.

Madonna Plaza is an outdoor mall with pretty mountain views and many fun stores. There's a Kohl's, Best Buy Electronics, Michael's Crafts, Five Below, Ulta Beauty, Ross Dress for Less, and awesome Tilly's clothing store. Madonna Plaza is along the freeway so it's convenient if you need to stop on a long drive. 
Walk through the short alley by Tilly's and you get to another shopping center called SLO Promenade. It has a Sprouts Market, REI sporting goods, Hobby Lobby Crafts (very good prices), Nordstrom Rack, and Cost Plus World Market with interesting jewelry, chocolates (smarties from England!- the British version of M&Ms), and home decor from around the world. 
Five minutes drive south is a Target, Costco, Home Depot, Whole Foods, TJ Maxx, HomeGoods, and Old Navy. So overall, this area on the west part of town has a lot of shopping options.
An attractive area with a coffee shop, gift shop, huge outdoor public space, farm, playground, and eucalyptus forest walkway in nearby neighborhood is San Luis Ranch Farms and Marketplace. 
There's a park with a playground by a blue lake across Madonna Road called Laguna Lake Park.
Nearby, check out the San Luis Obispo Childrens Museum, a good rainy day activity with tons of imaginary play activities for kids. Also, check out Downtown San Luis Obispo, especially during Thursday night Farmers Market when the whole town comes out to enjoy the scene.
While in SLO, don't miss out on the most amazing playground you'll ever see, at Sinsheimer Park.

Directions

Madonna Plaza is located at 281 Madonna Road,  San Luis Obispo, CA 93405. Exit Highway 101 at Madonna Rd and head west. The shopping center will be on your left. There are two sections (SLO Promenade is the other section, which you can walk to through a short alley near Tilly's) so make sure you see them both!

Click on map for interactive view