honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Saturday, October 17, 2009

Target zeroes in on Kailua location for 3rd Hawaii store


By Andrew Gomes
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Target has an agreement with Don Quijote (USA) Co. to gain its Kailua store, but it's not certain a deal will go through.

ANDREW SHIMABUKU | The Honolulu Advertiser

spacer spacer

Target, the nation's No. 2 discount retailer, has Kailua in its sights for a store that would be its third on Oahu and fifth in the state.

The company has an agreement with Don Quijote (USA) Co. to acquire its Kailua store and adjacent buildings on a seven-acre parcel Don Quijote leases from an affiliate of Kaneohe Ranch.

It's not certain that a deal will come to fruition, in part because Target and Kaneohe Ranch would need to agree on a lease assignment and extension or a land purchase that could be influenced by whether there is enough community support for Target.

Given the uncertainty, Target spokeswoman Anna Anderson said it would be premature to discuss specifics, such as a timetable or the size of a potential Kailua store.

"Target is interested in bringing a third Target to Oahu, specifically to the Don Quijote site in Kailua,"she said. "However, before committing to any location, we work with a variety of partners to ensure we can secure the appropriate approvals."

Kailua residents in the past have opposed big-box stores, particularly Walmart, The Home Depot and Costco.

Target, however, conveys more of a chic element that may fit better with the quaint Windward Oahu community.

Presently, Don Quijote's roughly 100,000-square-foot store in Kailua's commercial core next to Safeway is the biggest retailer in the community, which also has a 62,000-square-foot Macy's and is scheduled to receive a 40,000-square-foot Whole Foods Market in 2011.

Donna Wong, a longtime Kailua resident, said Target is in a different class than other big-box chains, and likely would be viewed by more residents as a welcome addition to the area.

"They probably would love to have a Target in their backyard,"she said. "But the devil's in the details."

Wong, who chairs the Kailua Neighborhood Board's committee on planning, zoning and the environment, said potential concerns with Target include its impact on traffic, store design and whether a parking structure is planned.

Larry Bartley, who has lived in Kailua since 1984 and is also on the Neighborhood Board, said he wouldn't mind a Target in the community, but he would hate to see Don Quijote close.

"I really love Don Quijote,"he said."It's the kind of store that fills a niche."

Bartley said he shops exclusively at Don Quijote for food, and also appreciates the product diversity in general merchandise that ranges from clothing to home appliances, much of it imported from Japan.

A representative of Don Quijote, a Japan-based chain that entered the Hawaii market in 2006 with the purchase of four Daiei stores on Oahu, could not be reached for comment yesterday.

Don Quijote has a land lease with Kaneohe Ranch that runs until 2022. Mitch D'Olier, Kaneohe Ranch president and CEO, said there have been discussions with Target about taking over the Don Quijote site, though no agreements have been made with the landowner.

"It's really early in the process,"he said.

The property includes the Don Quijote store plus a few smaller adjacent buildings, including a shuttered theater.

Target has been searching for sites to expand its business in Hawaii for at least three years when it acknowledged an effort in 2006 to find suitable locations for stores.

The first two Hawaii Target stores opened on Oahu in Kapolei and Salt Lake in March, and were followed by a third store in Kailua, Kona, on the Big Island that opened in July. A fourth store is slated to open in 2011 in Hilo on land leased from the state Department of Hawaiian Home Lands.

Target's stores nationwide average about 125,000 square feet. In Salt Lake at Bougainville Industrial Park, the company renovated and enlarged a former Costco store to create a 180,000-square-foot store, and also built a two-story parking structure with 720 stalls.

The Kapolei Target is 160,000 square feet and was opened as the main anchor to the new Kapolei Commons shopping center. In Kona, Target's store is also 160,000 square feet and anchors a new shopping center there. The Hilo store is designed to be 120,000 square feet.