Macy’s to close Kailua store next year

Macy’s is closing its Kailua store in 2016.

The department store chain recently told its roughly 70 employees it will shut down the 59,000-square-foot location at 573 Kailua Road sometime next year after the busy holiday season, a manager confirmed to the Honolulu Star-Advertiser.

“The lease on Macy’s store in Kailua, Hawaii, terminates in early 2016 and is not being renewed. Macy’s will continue to operate the store without disruption through 2015, with a final clearance sale planned for early spring 2016," said Macy’s spokeswoman Martha Gil De Montes in an email. "As the location closes in 2016, we will work to place as many associates as possible in nearby Macy’s stores."

Macy’s Kailua first opened as Liberty House in 1946. It converted to the Macy’s brand in 2006. 

"We are delighted to have been part of the Kailua community over the decades and look forward to continuing to serve our local customers at Macy’s seven other current locations on Oahu, as well as our new store scheduled to open in 2016 in Ka Makana Ali‘i in Kapolei," she said.

Macy’s recently "informally indicated" it would not be renewing its ground lease that expires at the end of the year, according to landowner Alexander & Baldwin.

"Obviously we’re sad to see them go, and we’re actually really disappointed that they chose not to renew," said Jon Moyer, A&B Properties director of asset manager for Kailua, through a spokeswoman. "We’re evaluating our options to make best use of this space.

Cincinnati-based Macy’s Inc. acquired in 2001 the former Liberty House department store chain, one of Kailua’s first retailers. A&B bought the land under the Macy’s store in 2013 as part of a $373 million sale from Kaneohe Ranch Co. and the Harold K.L. Castle Foundation that included 70 percent of the commercial-zoned land in Kailua and other property on Oahu. 

In 2013, the retailer shut its 80,000-square foot 1032 Fort Street Mall store as part of what the company called “normal-course adjustments to its portfolio.”

The downtown store opened in 1850 as Hackfeld’s Dry Goods and later became Liberty House, the state’s oldest and largest department store chain that was sold to Federated Department Stores Inc. in 2001 after emerging from Chapter 11 bankruptcy. Federated consolidated Liberty House into its Macy’s West division and, in 2007, Federated changed its corporate name to Macy’s Inc.

Macy’s has 15 stores in Hawaii, including eight on Oahu, three on Hawaii island, three on Maui and one on Kauai.