A former Macy’s store downtown will indeed become a Walmart.
The world’s largest retailer confirmed Friday that it plans to open a store in the center of downtown Honolulu next year after a roughly 12-month renovation of the space vacated by Macy’s last month.
"We’re pleased to continue the retailing tradition at this prime business location in Honolulu’s downtown urban core," Rey Armijo, Walmart’s Hawaii market manager, said in a written statement. "We also look forward to serving the downtown community’s businesses, residents and tourists and helping save them money so they can live better."
The store on King Street between Fort Street Mall and Bethel Street will be Walmart’s 10th location in Hawaii. It also will be the smallest Walmart in the state, at 80,000 square feet, and will be the only one here occupying two stories. A cart-moving escalator will allow people to shop between floors.
About 150 full- and part-time employees will be needed to staff the store, and the renovation work will generate about 60 construction jobs, Walmart said.
It hasn’t been determined yet if the store will be open 24 hours a day, but the store will not be a Supercenter with a full grocery array, according to company spokeswoman Delia Garcia.
Garcia said the store will have a limited grocery offering catering to the downtown population made up largely of office workers and residents.
"We saw a perfect opportunity," she said. "It’s a great location. We’re excited."
Walmart purchased the retail building and its connected five-story parking structure from an affiliate of Lexington Realty Trust for an undisclosed price. The city values the land and buildings for tax purposes at about $25 million.
The Star-Advertiser reported last week that Lexington had received a building permit from the city recently for what by all indications was a Walmart store. But Lexington and Walmart representatives previously declined to confirm the plan.
Kim Scoggins, vice president of the retail services division for commercial real estate firm Colliers International, said he thinks Walmart will be good for downtown, and downtown will be good for Walmart.
"Obviously there are very few retailers that could anchor a downtown Honolulu site like they do," he said. "Downtown is a tough retail business."
Macy’s said it closed its downtown Honolulu store because it was underperforming. The retailer inherited the space from Liberty House, the kamaaina department store chain that Macy’s bought in 2001 shortly after Liberty House emerged from bankruptcy.
Liberty House had considered closing the store there while in bankruptcy because of what it said was high lease rent but ended up maintaining the operation that had been at the site since 1982.
Local retail analyst Stephany Sofos has said that Walmart has the power to draw a very broad demographic of shoppers with its very broad range of merchandise. She regards the move as "brilliant" for the retailer.
Walmart will join other nearby retailers Ross Dress for Less, which is directly across Fort Street Mall from the Walmart site, and Longs Drugs, which is adjacent to Ross.
Garcia said it hasn’t been determined yet how the parking will be managed. The garage will continue to operate during renovation work.
Lexington Realty, a New York-based real estate investment trust, retained ownership of the mauka half of the block that contains smaller commercial buildings. The company has indicated that it is considering transforming that portion of the block into up to 300 residential units above lower-level retail.
Zoning would permit redevelopment on the site up to 450 feet high for office, retail, residential or hotel use.
