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Hoping for a holiday boost

Kailua retailers strategize to lure in more customers

STORY SUMMARY | READ THE FULL STORY

Kailua retailers, composed mostly of small specialty shops and boutiques, are bracing for a downturn in sales this year.


With fewer visitors coming to the isles, they are also relying on their local customer base to continue supporting local businesses. Most are also hoping for a holiday boost starting tomorrow, the busiest shopping day of the year.


Strategies include early sales and discounts, extras like free giftwrap, delivery and personalized customer attention.


At the same time, some winds of change are also blowing into the casual, Windward-side beach town, which has more parking, a new First Hawaiian Bank and two-story retail center under construction.


Whole Foods Market, which was announced earlier, is now projected to open in Kailua in fall 2011.

— Nina Wu



FULL STORY >>

By Nina Wu

POSTED: 01:30 a.m. HST, Nov 27, 2008

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Retailers in Kailua, mostly small boutique owners, are hoping for a boost this holiday season from local shoppers.

Times are tough for local retailers who have been impacted just like the national chains, but particularly for those who have a small staff and narrower niche in the market. They are putting in extras, like free giftwrap.

Gail Allen, owner of three shops - Island Treasures, Kailua Beach Walk and So Kailua - says she has felt a discernible change since April, when Aloha Airlines shut down.

She estimates sales are down anywhere from 20 to 30 percent, and she has had to trim staff.

Part of that is due to fewer tourists from Waikiki coming over the Pali to shop in Kailua town, approximately half of her customer base. Allen is leaning on more local customers this year, which she hopes will continue to support local businesses.

It's a stark contrast to 2007, which she called a banner year. Business has been good for the last five years, she said.

Still, Allen is hanging in there.

Part of her strategy is to offer more gift items in the $20 range She is also offering up to a 25 percent discount at her stores to help bring in customers.

She's hoping sales will pick up going into Black Friday.

Her first store, Island Treasures, has been around for 13 years on Kailua Road, offering art, locally crafted koa boxes, pottery, jewelry, dishware, quilts and jewelry.

Bonnie Madigan, owner of Under a Hula Moon, is also trying to stay positive during tough times.

The boutique at Kailua Shopping Center tantalizes customers with a few Christmas-related gift items on a small table outside.

Inside, Madigan offers unique Hawaiiana gift items including art, custom-made signs, quilts, jewelry and handmade shell wreathes, which at this time last year already were sold out.

"Kailua really is a unique retail town," said Madigan. "There's a camaraderie, a warmth and a real independence in that you can set your own rules. You also get to know your customers."

Madigan said she can sense that people are holding back more this year - many customers will come and look - but walk out without a purchase.

She also has a store at Ward Centre, which isn't doing as well as expected.

Terrie Farmakis has been the owner of Mary Z's, which sells women's fashions, for 15 years, during which she's expanded three times. Most of her customer base is local, with a range of fashions that appeal to the daughter, the mom and tutu.

"We've been through the ups and downs," said Farmakis.

September this year was down compared to last year, she said. Her strategy is to offer weekly sales of 20 to 25 percent off rotating brands, with new fashions coming in every week. A big weekend sale on overflow items begins on Friday.

Global Village started its holiday sales a week early this year, according to co-owner Sharrie Ah Chick. So far, she said sales seem to follow the ups and downs of the stock market, but the telling time will be the day after Thanksgiving.

"I think, on average, most people are being more conservative," she said.

Same-store sales for 47 tenants were down about 1.7 percent for the month of September, according to Mitch D'Olier, president and chief executive of Kaneohe Ranch Co., while numbers for October (not in yet) likely will be down as well.

However, same-store sales for the first nine months were ahead by about 2.5 percent, he said.

In general, retailers with lower price points are doing well in this economy, in line with national trends, as well as moderately priced restaurants and eateries.

There is still a line for smoothies and acai bowls at Lanikai Juice, and customers have not yet given up their espresso drinks or breakfast bagels, as indicated by the consistent crowd at Morning Brew.

Wes Zane, who opened Formaggio Grill this year, is hoping for a holiday boost with new two-course specials for lunch and dinner. He's trying to cut costs, but said he won't compromise quality.

Some changes are under way in Kailua - a former Aloha gas station at Kailua Shopping Center was flattened out after its lease expired to make way for more parking.

The new First Hawaiian Bank, meanwhile, is coming up from the ground next to the Foodland parking lot, as is 151 Hekili St., a new retail center expected to be ready for tenants next June.

Whole Foods Kailua expected for fall 2011

Whole Foods Market is still on the drawing board for Kailua, but has been delayed until fall 2011.

"This is due to working out the plans, the details and everything slowing down by reason of the economy and nothing more," said Kaneohe Ranch Co. President Mitch D'Olier. "In the crazy economy we're in right now, maybe it is kind of a blessing."

MC Architects is working on documentation design drawings for the new 40,000-square-foot store.

Some of the delay also was due to resolving iwi issues after three sets were found at the site of the new First Hawaiian Bank next door.

"It's all been squared away," said D'Olier. "We had wonderful cooperation from the state historic preservation division and the cultural descendants living in Kailua."

Whole Foods Market opened at Kahala Mall in September, and has plans to open stores at Ward and at Kahului on Maui as well.

 

Retailers in Kailua, mostly small boutique owners, are hoping for a boost this holiday season from local shoppers.

Times are tough for local retailers who have been impacted just like the national chains, but particularly for those who have a small staff and narrower niche in the market. They are putting in extras, like free giftwrap.

Gail Allen, owner of three shops - Island Treasures, Kailua Beach Walk and So Kailua - says she has felt a discernible change since April, when Aloha Airlines shut down.

She estimates sales are down anywhere from 20 to 30 percent, and she has had to trim staff.

Part of that is due to fewer tourists from Waikiki coming over the Pali to shop in Kailua town, approximately half of her customer base. Allen is leaning on more local customers this year, which she hopes will continue to support local businesses.

It's a stark contrast to 2007, which she called a banner year. Business has been good for the last five years, she said.

Still, Allen is hanging in there.

Part of her strategy is to offer more gift items in the $20 range She is also offering up to a 25 percent discount at her stores to help bring in customers.

She's hoping sales will pick up going into Black Friday.

Her first store, Island Treasures, has been around for 13 years on Kailua Road, offering art, locally crafted koa boxes, pottery, jewelry, dishware, quilts and jewelry.

Bonnie Madigan, owner of Under a Hula Moon, is also trying to stay positive during tough times.

The boutique at Kailua Shopping Center tantalizes customers with a few Christmas-related gift items on a small table outside.

Inside, Madigan offers unique Hawaiiana gift items including art, custom-made signs, quilts, jewelry and handmade shell wreathes, which at this time last year already were sold out.

"Kailua really is a unique retail town," said Madigan. "There's a camaraderie, a warmth and a real independence in that you can set your own rules. You also get to know your customers."

Madigan said she can sense that people are holding back more this year - many customers will come and look - but walk out without a purchase.

She also has a store at Ward Centre, which isn't doing as well as expected.

Terrie Farmakis has been the owner of Mary Z's, which sells women's fashions, for 15 years, during which she's expanded three times. Most of her customer base is local, with a range of fashions that appeal to the daughter, the mom and tutu.

"We've been through the ups and downs," said Farmakis.

September this year was down compared to last year, she said. Her strategy is to offer weekly sales of 20 to 25 percent off rotating brands, with new fashions coming in every week. A big weekend sale on overflow items begins on Friday.

Global Village started its holiday sales a week early this year, according to co-owner Sharrie Ah Chick. So far, she said sales seem to follow the ups and downs of the stock market, but the telling time will be the day after Thanksgiving.

"I think, on average, most people are being more conservative," she said.

Same-store sales for 47 tenants were down about 1.7 percent for the month of September, according to Mitch D'Olier, president and chief executive of Kaneohe Ranch Co., while numbers for October (not in yet) likely will be down as well.

However, same-store sales for the first nine months were ahead by about 2.5 percent, he said.

In general, retailers with lower price points are doing well in this economy, in line with national trends, as well as moderately priced restaurants and eateries.

There is still a line for smoothies and acai bowls at Lanikai Juice, and customers have not yet given up their espresso drinks or breakfast bagels, as indicated by the consistent crowd at Morning Brew.

Wes Zane, who opened Formaggio Grill this year, is hoping for a holiday boost with new two-course specials for lunch and dinner. He's trying to cut costs, but said he won't compromise quality.

Some changes are under way in Kailua - a former Aloha gas station at Kailua Shopping Center was flattened out after its lease expired to make way for more parking.

The new First Hawaiian Bank, meanwhile, is coming up from the ground next to the Foodland parking lot, as is 151 Hekili St., a new retail center expected to be ready for tenants next June.

Whole Foods Kailua expected for fall 2011

Whole Foods Market is still on the drawing board for Kailua, but has been delayed until fall 2011.

"This is due to working out the plans, the details and everything slowing down by reason of the economy and nothing more," said Kaneohe Ranch Co. President Mitch D'Olier. "In the crazy economy we're in right now, maybe it is kind of a blessing."

MC Architects is working on documentation design drawings for the new 40,000-square-foot store.

Some of the delay also was due to resolving iwi issues after three sets were found at the site of the new First Hawaiian Bank next door.

"It's all been squared away," said D'Olier. "We had wonderful cooperation from the state historic preservation division and the cultural descendants living in Kailua."

Whole Foods Market opened at Kahala Mall in September, and has plans to open stores at Ward and at Kahului on Maui as well.

 

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CINDY ELLEN RUSSELL / CRUSSELL@STARBULLETIN.COM
Above, Karen Krajewski, left, and Joan Mahoe of Island Treasures Art Gallery in Kailua posed for a portrait Saturday.