Posted on: Friday, October 5, 2001

Changes to start at Liberty House

By Andrew Gomes
Advertiser Staff Writer

The piano continues to play on the third floor and the name is still the same on the door, but the transformation has begun for Liberty House as it slowly becomes Macy's.

A 90-day status quo imposed by Macy's parent Federated Department Stores Inc. ends Monday. That marks the beginning of big and small changes to come for the company's 18 stores in Hawai'i and Guam.

Many of the immediate changes will not be noticeable to customers, such as a new computer system coming on line this weekend, or the first round of layoffs that take effect today as about 60 central office employees finish their last shifts.

But a few subtle differences are already apparent to customers. For instance, Liberty House no longer accepts Discover credit cards. Merchandise to be discontinued is being discounted. And the Hawai'i regional cuisine marketplace at the Ala Moana store has been condensed.

And more changes, Liberty House representatives said, will come in the next few months, including:

• Macy's charge cards to be mailed out in late November. (Liberty House charge cards will work through the end of the year.)

• Macy's store signs. (Some element of Liberty House's name/logo will be recognized on store signs, though Macy's has not revealed specifics.)

• A new customer loyalty program with a lower spending threshold for earning rewards.

• Architectural modifications to store interiors.

The stores should be recognizable as Macy's by Thanksgiving, in time for the holiday shopping season. Still, most of the merchandise sold for Christmas was already ordered by Liberty House before Federated purchased the kama'aina department store chain in July, a Macy's spokeswoman said.

New items to replace an estimated 15 percent to 25 percent of Liberty House merchandise generally won't be in stores until the spring, she added.

Major changes, such as possibly increasing store size, are being discussed for the Waikiki and Pearlridge stores, though Macy's representatives said they could not talk about plans.

The company has said it would assess replacing current restaurants at Liberty House stores, including Alan Wong's The Pineapple Room and Hackfield's at Ala Moana, and three The Gazebo restaurants at other stores.

Wong said he's not sure whether he will continue the fine-dining operation. "I'd like to stay there," he said. "I'm not sure if we will." Business has been tough and Wong wants some concessions, but he said he hasn't gotten much response.

A Macy's official could not be reached to discuss Wong's prospects, but Wong said he recognizes that he's now dealing with a big company with a lot of work to do for the changeover.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.