The Florida-based company last month signed a lease with Japan-based Toho Co. for a 9,000-square-foot Blockbuster Music store at the former theater site, said Mark Bratton, senior associate with Monroe & Friedlander Inc., the landowner's agent.

The new store, which will open around June, will be one of the state's largest music shops and will bring more competition to a crowded retail music market.

Bratton said today that Blockbuster Entertainment, which operates 12 Blockbuster Video outlets on Oahu, plans major renovations to the 32,800-square-foot property, including a remake of the front of the building facing Kapiolani Boulevard. He declined to reveal the construction cost.

"They're going to change the building from scratch," he said. "It'll be a whole new building, practically."

Blockbuster officials could not be reached for comment this morning.

Since 1976, the property at 1646 Kapiolani Boulevard has been occupied by Consolidated Amusement Co. which operated a 785-seat, single-screen theater.

Consolidated closed the theater last month after announcing that it plans to open a 25-screen theater complex in Kakaako.

The theater was built in 1963 by Toho Co., a Japanese filmmaker, Bratton said.

The entry of Blockbuster Music is bad news for one competitor.

Matthew Koenig, general manager of the 10,000-square-foot Tower Record store nearby on Keeaumoku Street, said the local market is already oversaturated.

Besides Tower, Oahu consumers can shop for music at Borders Books & Music, Costco, Sam's Club and Sam Goody, Koenig said.

"I don't see business that great now," said Koenig. "We don't need any more competition."