Many Hawai'i consumers have changed their habits in driving, electricity usage, dining out and grocery shopping to cushion the impact of commodity price spikes this year. Now it appears that more local residents are also adjusting their retail spending.

A shopping trend has hit retailers nationally in recent months, whereby consumers combating inflation and a deteriorating job market are spending less at upscale chains and more at discount stores.

In Hawai'i, where gas prices are among the highest in the United States and a wave of mass layoffs continues to push unemployment rolls higher and unnerve consumer confidence, the retail industry is feeling the pain.

"My shopping trend has definitely changed," said Kaimuki resident Charin Tomomitsu during a recent visit to Price Busters in Kalihi. "I used to be more of an impulse buyer. I'm more careful about (asking myself), 'Do I really need this?'," said Tomomitsu, a community relations manager for military housing construction firm Forest City Military Communities LLC in Hawai'i.

Among the inflationary pressures weighing on Tomomitsu's pocketbook are rising medical costs and an electric bill that keeps growing despite her best efforts to use less energy.

Tomomitsu said she hasn't quit shopping at department stores or specialty stores in favor of discount stores, but she will limit herself to sale items.

Also hurting retail sales in Hawai'i is the downturn in tourism, which accounts for a significant part of retail spending in the state. Visitor arrivals this year through July are down 7 percent.

Collectively, poor consumer confidence among kama'aina and visiting shoppers is resulting in more of a focus on necessities, value and low prices, industry observers said.

LOOKING FOR BEST PRICE

Heather Leslie, a 24-year-old mother and house cleaner from Nu'uanu, said inflation and the spate of news about layoffs at large local companies — Aloha Airlines, Maui Land & Pineapple and Hawaii Medical Center are just a few — have caused her to stretch her dollars.

"Everything is so expensive, you look for the best price nowadays," she said.

Recent sales reports from national retailers show that shoppers are cutting back primarily at upscale and specialty retailers.

At Nordstrom, same-store sales — revenue from stores open at least a year — were down 7 percent in the first quarter and 6 percent in the second quarter, compared with the same quarters last year.

Luxury clothing chain Saks Fifth Avenue reported same-store sales declines of 8 percent in the first quarter and 4 percent in the second quarter.

For Macy's, same-store sales were down 3 percent in the first quarter and 2 percent in the second quarter.

The effect has been worse for other national chains that in recent months have announced plans to close stores, including Zales (105 stores) and Sharper Image (90 stores).

Discount retailers, however, have been benefiting from consumers looking to economize on their purchases. At Ross Dress For Less, same-store sales rose 3 percent in the first quarter and 6 percent in the second quarter.

Wal-Mart reported same-store sales, excluding gasoline sales that boost revenue because of higher prices, rose 3 percent in the first quarter and 5 percent in the second quarter.

Costco same-store sales excluding gasoline were up 3 percent in the first quarter and 4 percent in the second quarter.

Same-store sales at Target were down less than 1 percent in both quarters.

All these retailers, except for Target, have stores in Hawai'i, but don't break out sales by state.

According to the state Tax Department, statewide retail sales for the first five months of this year are down 8 percent to $10.65 billion from $11.59 billion in the same period last year.

Jonelle Fujita, owner of local clothing boutique Cinnamon Girl with eight stores, said shoppers are cutting back.

"People are looking for the lower-priced items, and looking for sale items," she said. For example, customers buying gifts are opting for blouses instead of dresses. "There's traffic, but (shoppers) are not spending as much," she said.

SOME BRIGHT SPOTS

Michael Tam, CEO of local luxury wood furnishings retailer Martin & MacArthur, said the company is experiencing challenges like many in Hawai'i's retail industry, but there are some bright spots.

Tam said sales are up this year for a store in Wailea, Maui, which pulls customers from a market primarily made up of wealthy travelers who stay in the area's tony hotels or own luxury vacation homes or time-share property.

That market — the high end of the high end — tends to be more recession-proof, he said.

But at the company's two other retail stores, one at the Hyatt Regency Waikiki and one at Ala Moana Center, fewer visitors are impacting sales.

In response, Martin & MacArthur is altering its inventory at Ala Moana, which attracts a fairly balanced mix of residents and visitors, to feature more items that also appeal to residents, such as dinnerware and high-end bamboo cutting boards.

At the Hyatt store, the company is trying to carry a greater selection of "quick omiyage" — lower-priced items that will sell in greater quantities.

On the other side of the retail spectrum locally, sales are increasing for the 10-store discount chain Price Busters, which opened three seasonal-item stores at Ala Moana, Windward Mall and in Kapolei on Aug. 29.

Beth Tom, Price Busters owner, said sales at stores open for at least a year are up this year to date, though she declined to say by how much for competitive reasons.

"Everybody's concerned about the economy, but I think we're not going to see the economically challenged stop flooding into our stores," she said. "I'm glad I own Price Busters."