Market killers or makers?

Local executives
debate big stores

Either way, the addition of big-box retailers
and huge specialty stores has led to
many changes in Hawaii

By Gordon Pang
Star-Bulletin



The president of Foodland says her company has been forced to come up with ways to battle "big box" retailers such as PriceCostco.

But representatives from other commercial operations say big box and so-called market killer merchants such as the Sports Authority have helped bolster business all around.

The exchange took place at a forum, part of the annual Hawaii Congress of Planning Officials at Neal Blaisdell Center yesterday.

Foodland Super Market Ltd. President Jenai Sullivan Wall said skeptics such as herself initially believed that consumers would not "travel that far, settle for so little selection or buy that much lasagna. Boy, were we wrong."

Foodland has begun to emphasize the things it does best such as customer service and community service, she said. And last year, Foodland began its Maika'i program which rewards frequent shoppers.

Anna Ribucan of the Maui Chamber of Commerce said small businesses on the Valley Isle are also worried.

"We don't have as many people as you do on Oahu," she said. Many companies "are having a tough time staying in business."

Other business representatives argued that discount warehouse and specialty stores have been beneficial to the economy.

Victoria Ward Ltd. is in the midst of a major expansion to bring more big-box and market-killer stores to its Kakaako properties.

The latest will be the state's second Computer City outlet, slated to open next month.

Victoria Ward President Mitch D'Olier said that with the Hawaii economy still stagnant, big-box companies have actually helped, rather than hindered other retail stores.

"I think big-box retail fits better with traditional retail than is generally thought by the retail industry," D'Olier said.

Because they often draw large crowds, smaller, nearby retail businesses benefit, he said.

"We have found smaller retailers to have been positively affected by being adjacent to big box retailers," D'Olier said.

Jon-Eric Greene of Monroe & Friedlander agreed. He said sales at the Mililani Town Center dropped significantly in 1994, the year the Waikele retail complex began to pick up speed.

That changed, however, when Walmart opened in Mililani. "The small shops (in the complex) began doing better," he said. "It's been a positive influence."

City Land Use Director Patrick Onishi said he can remember when supermarkets, and later shopping centers, meant major adjustments to merchants and customers.

The same is happening with the arrival of big box and market killer stores. "It's really about changes and having to accommodate changes," he said.




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