New Pearl mall has world's biggest Navy exchange

By William Cole
Advertiser Military Writer

The 356,000-square-foot Mall at Pearl Harbor has a "wow" effect even before you get to the name brands, big-screen plasma TVs, Godiva chocolates section and endless deli counter.

Wyland's whales frolic above the entry to the military mall. Deborah Booker • The Honolulu Advertiser

The $54 million discount mall off Radford Drive has the biggest Navy Exchange in the world and the biggest commissary on O'ahu. After tomorrow's 8 a.m. ribbon cutting, they're expecting about 30,000 shoppers.

"There's been a lot of excitement. I think the customers have been waiting for this," said Paula Imamura, marketing manager for the exchange.

With the "premiere" opening of the mall — a grand opening will be held in May after the old exchange and commissary are torn down — the grocery and department store are expected to become a gravitational force that analysts say will draw military business away from "middle-market" stores like Macy's and retailers in Waikiki.

"Sears will be affected because of all the electronics, (and so will) Shirokiya," said Stephany Sofos, a Honolulu-based retail consultant. "Just think of all the middle-market stores, and it's uh-oh. But they (the Navy exchange and commissary) are doing something good for the military, which is a great thing."

The 256,037-square-foot exchange and 92,164-square-foot commissary will be open to active-duty military members, retirees, reservists, the National Guard and their families.

There are about 46,220 active-duty service members in Hawai'i, 61,500 family members and 14,500 retirees, according to the Pacific Command.

Sofos said the old Pearl Harbor exchange and commissary always did tremendous sales, so the new mall should be a sure thing.

Michelle Armour sets up a cosmetics display at the Navy Exchange. O'ahu's largest commissary also is in the new mall. Deborah Booker • The Honolulu Advertiser

Walk into the new two-story exchange, which the Navy calls its new "flagship" store, and there's Tommy Bahama aplenty for women. Down the way there's a section of Nautica for men. Need a Tori Richard aloha shirt with Santa on it for Christmas? The exchange has it. Brands like Ralph Lauren, Roxy and Quicksilver also have more of a presence.

The second-floor electronics department will offer eight more high-definition television choices, and four more plasma-screen TVs — including an $8,000 model.

The department is expecting a 50 percent increase in sales over last year.

There's a book section, as well as a surf shop, sporting goods, a flower shop, a package store with beer, wine and liquor (the commissary doesn't sell alcohol), and a beauty salon and barbershop with a massage treatment room.

The new commissary, which has the wide-open feel of Mainland grocery stores, has extensive deli, bakery and produce areas, along with a "grab and go" section where sandwiches, salads, drinks and desserts can be picked up in a hurry.

Commissary shoppers buy goods at cost plus a 5 percent surcharge that covers the construction of stores like the one at Pearl Harbor, as well as renovations to existing stores. A portion of exchange profits, meanwhile, is used to pay for new retail stores.

Exchange shoppers save 20 percent on average by shopping at the exchange, officials said, while commissary customers save 30 percent or more. Milk is less than $3 a gallon at the new commissary.

Renee Strader, who lives at Aliamanu Military Reservation, said the military store savings make a big difference. Her husband, Jimmy, is an Army staff sergeant at Fort Shafter.

"The savings are tremendous," Strader said. "If it were not for the commissary and exchange, I think me and the kids would have to go back to the Mainland. We could not afford to live here — we have six kids in the house."

Reach William Cole at wcole@honoluluadvertiser.com or 525-5459.