The Chicago-based company said it will open a 1,800-square-foot retail shop at Maui's Kaahumanu Center by January and plans to open stores at Ala Moana Center and in Waikiki in the next two years.

Dave Sanguinetti, president of Florsheim's retail operations, said the company hopes to capitalize on Hawaii's strong tourism industry, especially the Japanese tourism market.

"Being a 104-year-old company, we feel that we can attract the Asian customer," Sanguinetti said Friday.

Florsheim, known for its dressy but conservative styles for men, operates 225 shops in the United States and Canada.

The company's entry into Hawaii comes as it is also looking to expand into Europe and move into new product lines.

Florsheim recently reached a licensing agreement to sell John Deere work boots targeting younger consumers and also launched a line of golfing shoes targeting its core customers.

Paul Chun, chief executive officer of Chun Kim Chow Ltd., the state's largest independent shoe retailer, said the local shoe business has been soft due to the weak economy and increased competition from mainland shoe retailers.

Besides new retailers such as Famous Footwear and the Bass Factory Outlet, discounters like Walmart and off-price retailers like Ross Stores play a big part in the local market, said Chun, whose company operates about a dozen stores statewide, including Xavier stores for men and the Nicole and Charles Jordan stores for women.

"It's a crowded market," he said.