Tourist malls: Forget ’97

Star-Bulletin staff

Statewide retail sales rose in the all-important holiday shopping season in December but tourist-oriented malls on Oahu continued to feel the pain from the Asian economic flu.

Statewide retail sales rose to $1.521 billion in December, up 3.8 percent from $1.465 billion in December 1996, according to state Department of Taxation records.

Two Oahu malls in suburban areas scored modest gains as shoppers gave up their earlier reticence and began spending closer to Christmas. Two major malls catering to tourists -- Ala Moana Center and Royal Hawaiian Shopping Center -- said that although their sales were down from the previous year, 1997 was still a strong year.

Here's a look at the major Oahu malls' results for December, the most recent month available, provided to the Star-Bulletin by the malls.

Ala Moana Center: Sales fell 14 percent in December, said Dwight Yoshimura, general manager.

For all of 1997, sales were down 9.5 percent from 1996, which was the best year in the history of Ala Moana Center.

"We're basically tracking between the 1995 and 1996 levels," Yoshimura said. "Business in 1997 was O.K., it was still a good year. Our gift certificates were up. We're getting our share of the shoppers but people are spending less."

Yoshimura also said construction at Ala Moana resulted in several store closings, both temporary and permanent, and that hurt last year's sales.

Royal Hawaiian Shopping Center: Sales dropped 27 percent in December, said Charlian Wright, marketing director.

"The economic situation in Asia, as well as the value of Asian foreign currency to the dollar, continues to play havoc to sales within the center," Wright said. "The yen in December 1997 was at the value of 130 yen to the dollar as compared to December 1996 when the yen was valued at 115 to a dollar."

Despite these woes, the December food sales increased 38 percent and furniture sales rose 11 percent.

Annual sales at the center were down 17 percent compared with 1996. "Though the decrease in sales sounds dismal, this is the fourth best year in sales in the 17 years at the center," Wright said.

Kahala Mall: Sales climbed 3.82 percent, said Ron Yoda, general manager. It was the 28th straight month of increased sales, and Kahala Mall was up 5.29 percent for all of 1997, he said.

"People shopped earlier, right after Thanksgiving. But the first two weeks in December were slower as they did comparison shopping," Yoda said. "The last week before Christmas was very strong." Yoda said a revamped Christmas entertainment program helped bring in shoppers.

Pearlridge Center: Business rose 2 percent, said Heidi DiEugenio, marketing manager.

"We had a strong Christmas in 1996 so we were very happy to be up 2 percent (in December, 1997)," DiEugenio said. Pearlridge's business was up 14 percent for 1997, she added.

One new attraction this December was the "Keiki Clubhouse," which provided toys, crafts, and storytime for children, supervised by a parent or relative, while another family member shopped. "It just made life easier," DiEugenio said.

Windward Mall: Sales fell 1 percent, said spokeswoman Wright. Annual sales at Windward Mall dropped 2 percent from 1996. Wright cited the closure of Honsport, BJ Furniture and Home Fashions in 1997 as a major factor in the decline.

"With the opening of the H-3 highway (in December), our stores have reported increased sales from residents on the Leeward side who were curious to venture to the Windward side of the island," Wright said.