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The Honolulu Advertiser
Posted on: Wednesday, July 16, 2008

TOKUNAGA
At S. Tokunaga, customers help guide the way

By Curtis Lum
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

The family-owned S. Tokunaga Store on Hilo weathered two devastating tsunamis and is still going strong after 88 years.

Photos courtesy of S. Tokunaga Store

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Hawaii news photo - The Honolulu Advertiser

Michael Tokunaga, right, presents Jason Abadilla with the prize for catching the largest fish in the 2008 Ulua Challenge contest

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Hilo's S. Tokunaga Store has overcome two destructive tsunamis and tough economic times that seem to regularly hit the east side of the Big Island. But the 88-year-old family business has survived and thrived by keeping up with the desires of its customers, even if it means changing the focus of the store.

The store was founded by Sumie Tokunaga in 1920. Tokunaga had emigrated from Japan and worked in the plantation until he decided he wanted a better future for himself and his family.

"He was an immigrant and like most immigrants they came to better themselves," said grandson Michael Tokunaga, who now owns the business. "He just wanted to better himself, so went into business on his own. He wanted to be his own boss."

Sumie Tokunaga opened his store on Mamo Street near the Hilo waterfront. At first, S. Tokunaga Store was a typical mom-and-pop corner store that carried groceries and everyday products.

But Tokunaga was a fisherman and so were many of his friends and customers, who suggested that since he owned a store he should stock it with fishing tackle and other gear. Michael Tokunaga said his grandfather decided that the customers were always right, so he added fishing equipment to his inventory five years after opening the store.

"He did it for the love of fishing. He liked to fish and in that way he could bring in the goods that he liked to use," Michael Tokunaga said. "At that point, it was still a grocery and fishing store, but then the fishing side took off and he decided to focus on that aspect."

Business was strong, but tragedy struck in 1946 when a deadly tsunami devastated the Hilo area, destroying many homes and businesses, including S. Tokunaga Store. Unfazed, Sumie Tokunaga found a new location a block and a half away and built a new store.

But nature wasn't done with Tokunaga or Hilo, and in 1960 another powerful tsunami destroyed the family's second store and again much of Hilo town. This time many businesses did not return, but the Tokunaga family refused to give up and rebuilt a new store farther inland.

As the business returned to profitability, Sumie Tokunaga began to wonder who would take over once he's ready to retire. His oldest son did not work at the store and was not interested in running it.

That led Tokunaga to make an unusual move of asking his son's wife, Ethel, if she were interested in operating the business. She agreed to do so and the family business continued.

"My mother took over. It was like she was the 'No. 1 son,' which is unusual for them to pass the business over to the daughter-in-law," Michael Tokunaga said. "But she was willing to do it. My mom also liked to fish a lot."

Like his father, Michael Tokunaga was not really involved in the business while he was growing up. He had outside jobs in high school and went to college to study business.

But in the mid-1980s Sumie Tokunaga made another unusual proposal to his daughter-in-law and grandson.

"My grandfather asked me, 'Would you run the store later on?' He told me right in front of my mom, 'If you want, I'll give you the store. Your mom would pass it over to you and you can just run it if you want,' " Michael Tokunaga recalled. "I felt with this kind of opportunity I've got nothing to lose. I'll make a go at it and see how it comes about."

Michael Tokunaga, 52, took over in 1991 and like his grandfather, he began to make changes according to the desires of his customers. In addition to fishing supplies, he added equipment for camping, diving, archery, shooting and other outdoor activities.

The store recently launched a Web site, www.tokunagastore.com, and most of the merchandise is available on the site. Tokunaga's 10-year-old daughter also has her own segment on a local cable TV show called "Mykala's Fishing Tips."

Tokunaga said he's open to any suggestions on how to better his business. In this way, he said, he takes after his grandfather.

"The customers are your best informants no matter how you look at it. You can say we work for our customers," Tokunaga said.

"Finding your own niche is by reading your customers, seeing what goods and services are out there for the public."

Tokunaga said being involved in the community also is crucial to the success of any business. His store regularly sponsors a fishing tournament, as well as educational and environmental activities.

His efforts recently were recognized by the U.S. Small Business Administration, which named S. Tokunaga Store its Family-Owned Small Business of the Year for Hawai'i County.

Although he has three full-time and four part-time employees, Tokunaga said he still spends many hours at the shop.

"I have to spend a lot of time there because the business is mine. It's my baby. No matter how you look at it, it cannot be neglected," he said. "Plus, people do come to see Michael himself."

Reach Curtis Lum at culum@honoluluadvertiser.com.