Star Markets Ltd. is closing not one, but two, of its stores next year, but said it will renovate the remaining eight supermarkets of the 77-year-old chain on O'ahu, Maui and Kaua'i.

The kama'aina retailer said it will close its store at Kahala Mall in March when a lease with the shopping center ends.

Star last week disclosed plans to close its Kane'ohe store across from Windward Mall, and yesterday added that it intends to cease business there by the end of February and lease the building to drugstore chain Walgreens.

The decision gives Walgreens its second store location in Hawai'i (the first will be on Ke'eaumoku Street), and enables Kahala Mall to add one or more new merchants to its center.

Star said 91 employees will lose jobs at the two stores, though the company will try to relocate some to its four other stores on O'ahu and provide job assistance to others.

Karl Wissmann, Star president and CEO, said the company is committed to its future here, and will resume a multimillion-dollar renovation plan that started two years ago with its Mo'ili'ili store but stopped as the company considered continuing or closing the Kahala and Kane'ohe stores.

The Kane'ohe Star had the greatest renovation need, but Wissmann said it was the most risky venture.

"That store is a very low-volume store with a lot of competition," he said.

Safeway is at the adjacent Kaneohe Bay Shopping Center, while rivals Foodland and Times aren't far away.

Walgreens inquired about the site, and Star signed a letter of intent to sell its long-term lease. "It became a good financial deal for both of us," Wissmann said.

A lease extension at Kahala Mall would have required a renovation by Star, but no agreement could be reached with the mall's owner.

Wissmann said store renovations are expected to cost $2 million to $3 million per store, and that the plan is to renovate one or two stores a year, starting with Star in Kihei, Maui. The Mo'ili'ili store's garden shop also will be upgraded early next year.

Star began its renovation plan in 2004, spending $2.5 million to give the Mo'ili'ili store an aesthetic face-lift, expand the deli, bakery and liquor selections, as well as add sections for imported and gourmet foods, health products and hot prepared foods.

"We're very pleased with the concept we've developed," Wissmann said. "We're very successful with it."

Star also plans to expand a program establishing customer service manager positions for each store.

The company recently added the in-store jobs at its four Neighbor Island stores, and will do the same at its O'ahu stores early next year.

Wissmann added that Star is looking for sites where it might open new stores. The previous additions to the chain were stores in 'Ewa Beach and Lahaina, Maui. Former store locations include Pearl City and Kailua.

Star began in 1929 as the mom-and-pop Kakaako Meat Market started by Tsunejiro and Mika Fujieki. The Fujiekis opened their first Star, the Mo'ili'ili store, in 1954.

Over the years Star grew to 10 stores, and the company has been run by three generations of the Fujieki family.

Tsunejiro and Mika's grandson, John Fujieki, in 2002 handed operations over to Wissmann, a former senior vice president for Ralphs Grocery Co. in California.

John Fujieki in mid-2005 handed his chairman position over to his cousin, Patrick Fujieki, but remains a shareholder.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.