|
Wal-Mart already
changing Honolulu
While the retail giant opens its
massive store, nearby businesses
are dealing with higher rent
and dropping their prices
Cars and people swarmed past Rainbow Photo Video, a small business that fronts Keeaumoku Street yesterday, but inside, the store was quiet.
"Wal-Mart has opened and everyone is paying attention to that," said owner Brad Wong, who pointed across the street at the behemoth, double-decker Wal-Mart and Sam's Club complex.
"The 800-pound gorilla has finally arrived and everyone is going to be affected," Wong said
The arrival of the big-box retailer in Honolulu's urban core has already resulted in raised rents and the upcoming closure of a neighboring business, 50% Off Optical, Wong said. The store, which opened in 1988, will close Oct. 25.
"When my rent went up $800 a month in June, I had to ask myself if I was willing to take the risk and stay in business," Wong said, adding he ultimately chose to wait but has changed his business strategy.
While many surrounding businesses believe the boost in traffic could pump up sales, other smaller businesses fear they will be obscured by the beige monolith, whose complex stretches across 10.5 acres. To prevent that from happening, small businesses are dropping prices, expanding, remodeling and diversifying their products.
Wong said he's changed the name of his store, dropped prices and remodeled to emphasize to customers the personalized services he offers.
Wong is not alone. Plenty of neighboring businesses like Elite Electronics, in Sam Sung Plaza, are following suit. The electronics store has rearranged its merchandise to resemble a department store and opened up a special showroom complete with candles, mood lighting, sound effects and wine glasses.
"We wanted to show customers that we are selling an experience that doesn't just come in a box," said manager Dean Okamoto.
The new Wal-Mart has many departments, including a photo center, pharmacy, vision center, L&L Hawaiian Barbecue and an American Savings Bank branch. The store will also offer an expanded Asian foods section and will be the first Wal-Mart in Hawaii to sell plasma screen TVs.
The 315,000-square-foot development and 1,700-stall parking deck will create a retail super block that can fit Ward Warehouse, Ward Centre and Ward Village Shops inside, and have room to spare.
"It's huge and when combined with Ala Moana, it's going to create a mega-retail corridor that will pull shoppers from as far away as Pearl City and Kaneohe," said retail analyst Stephany Sofos.
On the mainland, Wal-Mart has been seen as destroying most neighboring small businesses within a year or two, but that hasn't been the case in Hawaii, Sofos said.
"In Hawaii, big-box retailers, haven't necessarily been category killers," she said, adding that businesses that don't try to compete head-on with Wal-Mart and Sam's Club will likely profit from an increased customer base.
"As great as Wal-Mart is, they can't do everything and that's where the little guys will pick up business," she said.
Wal-Mart's retail brother, Sam's Club, is scheduled to open next Thursday at the same location.
Most of the new adjacent shops on Keeaumoku, including Hanazen, Golden Coin Bake Shop & Restaurant, Starbucks, Jamba Juice, Cold Stone Creamery and Supercuts, also opened yesterday.
Business was good yesterday for Jamba Juice, said General Manager Kyle Zakahi. Workers from the nearby HMSA and Pacific Guardian Tower buildings rushed the store early, along with Wal-Mart shoppers, he said.
The big-box grand opening brought thousands of shoppers, including Poly Trajano of Kalihi, who was the first customer to walk through the doors yesterday. "I came to buy today," said Trajano, who arrived at 4:30 a.m. to get a jump on shopping.
The store's regular hours will be 6 a.m. to midnight, seven days a week.
"It's more cheaper," Trajano said. "I'm gonna buy batteries and car stuff and the $5.82, 20-pound bag of rice."
Customers had asked for a Wal-Mart downtown for some time, said store manager Walter Lott.
"This new store means that for the first time in central Honolulu, we'll be able to offer customers what they've asked for -- quality merchandise, low prices and Wal-Mart's spirit of aloha."
The company also provided jobs to Honolulu residents, said Cynthia Lin, Wal-Mart's spokeswoman, who added that 7,000 people applied to work at the complex. Wal-Mart hired 800 associates at an average wage of $10.42.
While a certain segment of the community looks forward to the affordable shopping opportunity Wal-Mart brings to downtown, others are concerned about the impact on traffic and on the density, said Roy Nakamura, who lives on nearby Cedar Street.
"When traffic gets bad, we'll not get any peace," Nakamura said. "I expect the worst from Wal-Mart, not the best."
About 50 members of the native Hawaiian community arrived to protest Wal-Mart's decision to open for business before burying the disinterred remains of native Hawaiians that were found on the site during construction.
Paulette Kaleikini, whose ancestors were found on the site, greeted shoppers yesterday with a sign that said, "You are driving over our ancestors."
There have been 44 sets of remains found at the Wal-Mart site since construction began in December 2002, most of which are believed to have been buried after a smallpox epidemic in 1853.
The disinterred remains will be buried in a single location on the site once family members decide what process should be used, Lin said.
