Retail sales offer glimpse into state's economy
| • | Isles brace for slowing economy |
By Andrew Gomes
Advertiser Staff Writer
As a roughly $17-billion-a-year industry employing about 115,000 workers, retailing in Hawai'i makes up a key sector of the state's overall economy.
Monitoring retail sales gains, or losses, offers a window into Hawai'i's economic health, as well as the health of thousands of workers and businesses.
"It's not an engine of growth, but one of the cars in the train," said Paul Brewbaker, chief economist at Pacific Century Financial Corp. "You can kind of get a feel, if you're looking at retail, for various crosscurrents (of the economy).
"It's a barometer for what's happening in tourism ... residential real estate, construction and stock market wealth."
Brewbaker noted that retailing accounts for 11.5 percent of Hawai'i's gross state product — more than the military, and more than state and local government combined.
Beginning this month, The Advertiser Business section will run a monthly review of sales performance at some of the state's largest shopping centers, including a couple with large tourist customer bases, in an effort to offer a cross-section of the industry's direction.
Individual malls, while declining to disclose overall sales totals, collect information from tenants and provide percentage changes. This first review focuses on January; February results are due out shortly.
From time to time, the review will include notes that highlight performances or explain changes at specific malls. For instance, in January, Kahala Mall reported that stores received fewer returns in January of items bought during the Christmas season. The mall also saw a "noticeable increase" in the number of Japanese visitors, and said shoppers spent more per purchase.
"Shoppers seemed to have a greater propensity to buy," said mall marketing director Laurie Hara.
At Ala Moana, the center reported above-average increases in purchases of family apparel (30 percent), personal services (26 percent) and stationery, cards, gifts and novelties (14 percent).
Wade Lord, general manager of Kukui Grove Center, said the Kaua'i mall benefitted from lower unemployment and higher hotel occupancies for the month.
Sales at Royal Hawaiian Shopping Center were affected by the yen exchange rate. Typically, January is a good month for the Waikiki mall. But the yen averaged 116 to the dollar for the month, compared to 107 during January 2000, resulting in less buying power and hence a decline in sales.
At Aloha Tower Marketplace, another center heavily dependent on tourists, January sales were higher because the Y2K scare that kept visitors away depressed sales in January 2000.
Special events or promotions, like a four-day sidewalk sale at Pearlridge in January, also will often affect year-to-year sales.
