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Retailers see happy
holidays this year
Isle merchants credit
the stronger economy
When shoppers line up outside Hawaii stores before dawn tomorrow, their early-bird purchases will help boost overall holiday spending about 4.5 percent this year, national studies say.
That same eagerness to shop will support Ala Moana Center's projection that its sales will top $1 billion this year, for the first time since 1996.
"We're actually projecting we'll be in the high-single-digit increases over last year" for the holiday season, said Sharon James, regional vice president for marketing for General Growth Properties Inc., which owns Ala Moana.
Total sales in the United States will increase, according to projections from the Washington, D.C.-based National Retail Federation, but less than the 5.1 percent gain last year.
A rebound in Hawaii's economy, increases in tourism and new tenants in Ala Moana's former J.C. Penney space are contributing to a bigger local jump this year, James said. The abandoned space is not filled, but it has taken on some revenue-generating, rent-paying tenants.
Locally based stores are part of the new retail mix at Ala Moana this year, including Sandal Tree Ltd. and Maui Divers of Hawaii Ltd.
"What I'm finding is that the so-called luxe customer, the better customer, doesn't seem to be affected by the economy. They're spending," said Paula Sussex, president of Sandal Tree. "We are selling novelty kinds of items; things that are different and fun seem to be doing well."
Maui Divers also is spending its first Christmas at Ala Moana, with an 800-square-foot retail store in the former Penney's space.
"We're expecting a very strong holiday business," said Bob Taylor, president and chief executive officer.
The company has launched advertising aimed at the local market, where it had previously focused largely on the visitor market. "We're introducing two new TV ads. One will start running Friday for the holidays, and one on (Dec.) 26" for post-holiday sales, Taylor said.
The retailer's sales at Ala Moana are about 50 percent local, which mirrors the center's customer mix.
The opening of Wal-Mart and Sam's Club, up the street from Ala Moana, may have had some impact on area merchants at the very beginning, but things have leveled off, James said.
"If anything, during the holidays, I think having the retail critical mass might bring people from other parts of the island into this area more often," she said.
Officials at Windward Mall are also optimistic about holiday sales.
"We're looking at the December report from last year when we did 4 percent over December '02 sales. I hope for at least that much or better (this year)," said General Manager Jonathan Kim.
Windward Mall, managed by General Growth, is at 85 percent occupancy. New tenants include Between Worlds, which sells artwork from around the planet, while others are seasonal, such as Hickory Farms, Islands in the Sun and Pictures in Motion.
Borders Express and related brands take up considerable real estate at Windward Mall, including the seasonal Day by Day Calendar Co., the year-round Bargain Books and Otaku Takeout, an anime store now in a space formerly occupied by Hopaco space.
KB Toys' Windward Mall location will open at 5 a.m. tomorrow, while Sears and Macy's will open at 6 a.m. When the rest of the mall opens at 8 a.m., mall staff will hand out 250 goodie bags to early shoppers.
