Pearlridge Macy's expanding

By Andrew Gomes
Advertiser Staff Writer

Macy's is taking another step to put more of its mark on the 12 department stores in Hawai'i and Guam that it took over from Liberty House last July, announcing major expansion and renovation plans.

The company, according to mall managers, also is discussing expansion possibilities for other stores in Hawai'i and Guam.

Meanwhile, interior renovation work is under way at Macy's flagship store at Ala Moana Center, to be followed by additional renovations at other Hawai'i stores later this year, according to Deena Nichols, Hawai'i regional store director for Macy's West.

Nichols also said stores will see a roughly 30 percent increase in merchandise as $35 million of new stock should be delivered in the next few weeks.

The latest round of changes will be some of the most substantive for shoppers, who saw the department store name change from Liberty House to Macy's in November along with a gradual turnover of merchandise, new displays, the Macy's credit card and cash register system.

"By the end of the second quarter, all the stores will be 100 percent complete Macyizing," Nichols said.

Some local retail industry experts expected Macy's to seek additional space at several locations because the former Liberty House stores acquired by Macy's parent company, Federated Department Stores Inc., are dramatically smaller than the typical Macy's stores.

The average Macy's Hawai'i department store is 100,000 square feet, with five around 60,000 square feet or less.

By comparison, the average Macy's West store is 200,000 to 250,000 square feet. Before its takeover of Liberty House, the company's smallest full-line department stores were about 100,000 square feet.

The Pearlridge expansion is the second for Macy's in Hawai'i. The company earlier this year began an $8 million expansion and renovation at its Waikiki store after reclaiming some store space Liberty House had subleased to others.

Nichols declined to talk about possibilities for other store expansions, but some mall managers said yesterday that Macy's is interested in more space.

"We are still in discussions with them about a larger space," said Carol Van Camp, general manager at Prince Kuhio Plaza in Hilo where Macy's has a 50,000-square-foot store.

Phil Schrage, general manager at the Micronesia Mall in Guam, said Macy's executives met with him last week to discuss expansion opportunities, including possibly filling in a second-floor atrium within the 81,000-square-foot store.

"That would be a way to increase their space without increasing their rent," he said. "It's a decent sized atrium. I don't know what the determination was."

Ron Yoda, general manager at Kahala Mall, said Macy's has been pretty aggressive in seeking additional space.

But at Kahala, where Macy's took over three unconnected Liberty House stores totaling about 110,000 square feet, space is too tight to accommodate the retailer.

"They would like more space here, but there just isn't any available that they can expand to, unfortunately," Yoda said.

At Pearlridge, the expansion will allow Macy's to introduce its trendy teen department concept, and renovate and grow other departments in the existing store. Macy's said it expects to hire additional employees, though it did not estimate how many.

The new teen department, dubbed THISIT and pronounced "this is it", will feature an exposed ceiling and cement-floor look with laser lights, video screens and a DJ booth for occasional live mixing of music.

A similar department, minus the industrial-looking ceiling, is under construction at Macy's Ala Moana store on the second floor, and is expected to be completed in May.

Other recent or ongoing changes at Macy's Ala Moana include moving the cosmetics department to the main mall-level entrance, and an expanded women's shoe department. A plus-size fashion collection for women, and expanded men's and children's departments are planned.

At other Hawai'i Macy's stores, improvements under way are mainly limited to new fixtures, displays and reorganized departments, though substantial renovation plans will be unveiled later this year, Nichols said.

"We're really excited about (Macy's renovation and expansion) happening here," said Schrage at the Micronesia Mall, where Macy's is the largest anchor. "The store pretty much still looks like Liberty House."

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