Posted on: Sunday, November 18, 2001

Editorial
Demise of local retail part of a global pattern

Once again, we learn of the demise of another kama'aina retailer, a victim of the continuing economic malaise in Ha-wai'i, now exacerbated by the fallout from Sept. 11.

Chun Kim Chow, operator of such venerable store names as Robins and Ethel's as well as other stores, will cease as a retailer by the end of January. The family shoe and clothing empire has served Hawai'i's shoppers well for 93 years. But in recent years, the company had scaled back in the face of competition from Mainland-based stores.

That competition creates an ironic dilemma for Island shoppers. For years we lamented a hide-bound retailing atmosphere with little competition and often little choice. But that has changed. First the big-box retailers put their toes in the water and expanded quickly as sales shot up. Shoppers, giddy for selection, lower prices in some cases, and the panache of these new retailers, flocked to the imports and away from the stalwart local stores.

Now, of course, we lament the loss of our own retailers, the stores we, and our parents, grew up with. But the economic world is not sentimental.

Some local retailers have found a niche and survived. But, the unfortunate fallout from competition is that even retailers who offered value and service can find themselves unable to hold their own against the economies of scale they can't begin to match.

This competition has put a downward pressure on prices, increasing disposable income. If that is what we want, and most shoppers have shown it is, then it will come at the expense of those who cannot compete in price or selection.

And so we lose a little more each day of what made us unique. But, for better or worse, we are part of a global economy now and cannot retreat to a time when we lived in our own insular economic world. If we are to attract the best and the brightest to our shores we must have a robust, competitive retailing environment.