Toshiba Hawaii shuts doors
By Andrew Gomes
Advertiser Staff Writer
Electronics giant Toshiba has closed its Hawai'i consumer products subsidiary after 41 years, telling local retailers it was no longer economically feasible to maintain the operation.
Toshiba Hawaii Inc., which distributed and serviced consumer electronics from TVs to fans and rice cookers, began winding down operations a few months ago and recently removed company signs from its building at Victoria Ward Centers in Kaka'ako.
In a phone recording, Toshiba Hawaii said most daily operations are closed, and referred callers with service needs to a half-dozen companies in Hawai'i and on the Mainland. The company has referred retailers to third-party Mainland distributors.
Tina Tuccillo, a spokeswoman at New Jersey-based Toshiba America Consumer Products Inc., said the move was made to become more efficient.
"Basically, globalization and consolidation — everyone is doing it nowadays," she said. "This was a move for us in that direction."
The number of people Toshiba Hawaii employed and its business volume were unavailable, but retailers said local distribution of consumer electronics has become more challenging for manufacturers.
"Most home electronics are a low-margin business," said Gill Berger, manager of Sears Roebuck and Co. at Ala Moana Center. "It's just difficult. (Hawai'i doesn't) have the kind of volume to support a full-distribution operation here."
Hitachi closed a similar operation several years ago, though Sony and Panasonic still maintain local distribution and service.
Berger said Sears relies on local Sony and Panasonic distribution operations, but got the majority of Toshiba products through a national contract.
Some smaller retailers said Toshiba's exit has left them, at least temporarily, without a feasible source for Toshiba products.
Walter Watanabe, manager of Shirokiya at Ala Moana, said he doubts that he can buy and ship Toshiba products for a low enough cost without manufacturer-direct distribution.
"This makes it hard to get Toshiba products," he said. "Right now, we can't get it. I was really angry because they just cut us off."
Erwin Uyeda, head nonfood buyer for Daiei, said Toshiba's branch operation allowed Daiei to order inventory with one-day notice and carry more variety because Toshiba warehoused what it sold. Toshiba even had a sales force to help train retail sellers, he said.
"It's sad to see these guys go," Uyeda said. "It's too bad for Toshiba's loyal customers."
Uyeda said Toshiba America told him it has no plans to sell to the Hawai'i market directly, and he has yet to look into buying from a list of third-party distributors that Toshiba provided.
Toshiba Hawaii was set up as a branch office in 1963 to serve as a test market for Toshiba consumer products in America. The Hawai'i unit was made a subsidiary of Tokyo Shibaura Electric Co. in 1968.
Toshiba Hawaii's closure does not affect Toshiba's local office-equipment operation, Hawaii Business Equipment Inc., which Toshiba America Business Solutions Inc. purchased in September to sell Toshiba office products and services on O'ahu, Maui and the Big Island.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
