National retailer Ross Dress for Less said it is preparing to open two more locations on Oahu, adding to the mix of discount stores that have recently intensified competition in the Hawaii market.
The Pleasanton, Calif.-based discount chain has signed lease agreements for the former Longs Drugs site at 2220 S. King St. and for space at Laulani Village, a 218,000-square-foot shopping center set to open in Ewa by year’s end. However, it has not determined a time frame for the store openings.
"It’s an excellent move for Ross because the demographics in both situations are perfect," said Honolulu retail analyst Stephany Sofos. "You have a lot of older residents and university students (in Moiliili) that are the perfect demographic for Ross because they’re looking for discount bargains. (The university) is within a bicycle ride to the store, and all the older people who live around there can walk to the store. Ewa Beach is a very middle-class community … and getting in and out of Ewa Beach, it takes a lot of time. If it’s inconvenient for them, they’re not going to go out. You’re in a captured market place."
The discount stores will measure roughly 30,000 square feet each and together employ about 100 workers, Ross spokeswoman Bobbi Chaville said. She declined to disclose how much the company is investing in the expansion.
"We are planning to grow our store base by about 6 to 7 percent this year as well as in the foreseeable future," she said. "We continually look to expand. We’re excited to be opening more locations."
The company opens new stores only three times during the year: in March, July and October, Chaville added. So, for example, if a March opening date is not met, the next opportunity to launch a new location would be in July.
Ross has 13 stores in the islands, including 10 on Oahu, two on Hawaii island and one on Maui.
The company’s latest outlet opened in October, a 40,000-square-foot flagship store at the old Waikiki 3 Theatre site.
"We love bringing branded bargains to Hawaii, and I think the customers have responded well to that," Chaville said. "We believe that customers look for bargains in good times and bad times."
Ross Stores Inc., which operates more than 1,000 stores in 33 states, first opened in Hawaii in 1993. The company significantly expanded when it purchased the leasehold rights to six retail locations from the parent company of rival T.J. Maxx when it left the islands in 1996.
T.J. Maxx re-entered the Hawaii market in May when it opened three new stores, two of them just blocks away from Ross stores.
"Retail today is shifting dramatically. … What retailers are needing to do is to get as close to the community or the people who are their customers and make sure it is so convenient that there is no effort on the consumer to shop," Sofos said. "This is a good move for Ross because they’re saying, ‘We’re going to come to you instead of you coming to us.’"
