Shirokiya, Honolulu's longtime Japanese department store, will lay off more than a third of its staff in mid-March.

The store, which has a 51-year history at Ala Moana Center, originally notified the state Department of Labor that it would let go 71 out of 133 employees by March 14. The notice was sent in early January.

Michael Shihara, director of human resources, told the Star-Bulletin yesterday the number had changed to 50 by the final cut, or roughly 37.6 percent of the staff.

“;It's across all of the departments,”; Shihara said. “;We just had to take a look and restructure. After we evaluated everything, we had an excess of employees. Hopefully this will help us to continue on.”;

The layoffs will include sales, stockroom and several management-level employees. Shirokiya hired few seasonal workers for the holidays, he said. Its plan is to outsource some administrative functions to cut costs.

St. Germain Bakery, however, which sublets space in the store, will not be affected.

Shirokiya opened its first department store outside of Japan at Ala Moana Center in 1959. It was originally founded in 1662 as a carpentry goods store (Shirokiya means “;white wood store”;). Tokyu Department Store Co. of Japan bought the store in 1958 and expanded to Ala Moana a year later.

At one time, Shirokiya also had stores at Pearlridge Center and on Maui, but financial troubles of its parent company led to their closing in 2001. Some 40,000 customers signed petitions and letters in protest of the near-shutdown at Ala Moana, and Tokyu sold Shirokiya to local management for $1.

Over the decades, the store has had to adjust to new competing forces but has managed to survive due to a loyal customer base.

The electronics section was significantly downsized due to competition from big-box stores like Best Buy, according to Shihara.

Shirokiya decided to expand its crafts section celebrating Japanese traditions as well as its food court upstairs, which is usually bustling. The food section makes up more than 60 percent of sales.

The department store also offers toys, housewares, home furnishings, jewelry and cosmetics.

“;We're just evaluating right now to see where the market is,”; Shihara said. “;We're trying to service our customers the best way we can.”;

The National Retail Federation reported that the 2009 holiday season ended at $446.8 billion, up 1.1 percent from the previous year, which was better than anticipated. Originally, the NRF had forecast a 1 percent decline.

But retail analyst Stephany Sofos predicts more layoffs ahead.

“;It's a sign of the times,”; Sofos said. “;I think there is some stability taking place in the marketplace, but I don't think the economy has turned yet.”;