Macy's to double presence in Hilo

By Andrew Gomes
Advertiser Staff Writer

Macy's has reached an agreement to purchase its second former J.C. Penney store this year, more than doubling its space in Hilo and continuing an aggressive growth strategy throughout the state.

The acquisition at Prince Kuhio Plaza follows a similar deal last month in which Macy's bought the former J.C. Penney store at Maui's Queen Ka'ahumanu Center.

Macy's, a division of Cincinnati-based Federated Department Stores Inc., did not disclose a purchase price for either store acquired from J.C. Penney, which closed all four of its Hawai'i stores last month.

The Hilo and Maui spaces are scheduled for remodeling this spring and will reopen as Macy's in the fall. The two existing Macy's stores at both malls will be updated to feature expanded assortments of women's apparel, accessories and shoes. The new locations will feature expanded men's, children's and home merchandise.

"We are very excited about these new stores, which will essentially double our presence in both malls," said Robert Mettler, chairman of San Francisco-based Macy's West. "It gives us the opportunity to give departments the space they need."

Mettler said the company's 11 Hawai'i department stores are some of the best performing among roughly 140 stores in seven states, though the stores here are significantly smaller than most others.

Before entering the Hawai'i market in July 2001 with the purchase of local department store chain Liberty House, Macy's West stores averaged 200,000 to 250,000 square feet, with the smallest full-line department stores at about 100,000 square feet.

All but three of the initial Hawai'i department stores for Macy's were under 100,000 square feet, which made for a tight fit and led the retailer on an expansion mission.

Since then, Macy's has leased the former Shirokiya space at Pearlridge, adding 19,000 square feet to make that store its second-largest in Hawai'i at 170,000 square feet. Macy's also slightly expanded its 40,000-square-foot Waikiki location.

Some local retail analysts believe Macy's is seeking additional space made available by J.C. Penney at Ala Moana Center, possibly for a Macy's Home Store. Macy's officials have not said whether they are interested in expanding at the state's largest shopping center, where the retailer's store is 327,000 square feet.

The Hilo space for Macy's, currently at 50,000 square feet, will become 112,000 square feet. The addition will make the presence of Macy's in Hilo its fourth largest in Hawai'i, bigger than stores at Kahala Mall and Windward Mall, but smaller than Ala Moana, Pearlridge and Maui.

"Over the past year, we've received positive feedback from our customers on the styles, fashion and selection at Macy's," said Deena Nichols, senior vice president and director of stores for Macy's in Hawai'i and Guam. "Our new Hilo and Maui stores will enable us to meet our customers' demands for an even larger assortment of merchandise."

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