J.C. Penney, which closed earlier this month, occupied 220,000 square feet of the 1.8 million in the shopping center, Hawai'i's largest and one of the most successful in the nation.

"Virtually every retailer in the world knows Ala Moana and wants to be here," said Kay Day, regional vice president for leasing at General Growth Properties, owner of the center.

The company began seeking new tenants on Monday and is looking for a mix of national and local retailers and restaurants. Day said one or more big-box retailers will likely be taking spaces that could range from 10,000 to 30,000 square feet. The stores will range from luxury merchandise to what the center's manager calls "value" stores.

Redesign of the three-level J.C. Penney space will involve adding sidewalks and possibly interior walkways, Day said. The configuration will not be decided until the tenants have committed, she added.

The decision ended speculation that General Growth would use the space for a full-line Nordstrom department store, which the company said it was considering. That move, considered likely by some retail analysts, would have fulfilled a more than 10-year effort by the Seattle-based department store chain to open a full-line store in Hawai'i.

General Growth has been negotiating to bring Nordstrom into the mall after a plan was scuttled by former department store Liberty House, which had a provision in its lease allowing it to prohibit the addition of another department store outside existing mall walls.

That objection was repeated by Macy's when it took over Liberty House's lease last year.

Nordstrom opted to build a full-line department store at Victoria Ward Centers, but canceled its agreement after General Growth bought Victoria Ward in May.

Nordstrom officials could not be immediately reached today to comment on Ala Moana's decision.

Several Hawai'i retail analysts had predicted that General Growth would choose to divide the Penney space to increase its net income and diversity of stores, especially because anchor tenants like Nordstrom generally don't pay much rent compared to many smaller retailers.

Leasing experts said prospective retailers General Growth may seek could include Pottery Barn, Crate & Barrel, electronics retailer Best Buy and home furnishings by Macy's.

"Our customers' tastes are constantly evolving, and finding space for new and exciting retailers who would like to be in Hawai'i has always been a tremendous challenge," Day said. "This is an exciting opportunity for us to offer (new) retailers a chance to be a part of Ala Moana Center."

Day said General Growth is in discussions with retailers interested in the space, but did not disclose names.