Discounts abound as Lihue Big Kmart prepares to close

LIHUE — The Kmart parking lot was full Thursday afternoon, but inside the shelves are starting to empty as the store prepares for a September permanent closure.

And walking through the aisles of discounted snacks and household items, yard and beach furniture and clothing — with sales anywhere from 15 percent to 40 percent off — people were asking what’s next.

Overwhelmingly, the consensus was that a Target should replace Kmart.

“I’m with everyone else, I think that they should get a Target in here, or something like it,” said Amber Thronas, a school teacher who lives in Wailua. “Something that gives us options in addition to Walmart and Ross.”

Kauai Chamber President Mark Perriello said he’s hoping a discount retailer or something like Target goes into the space as well and there’s a chance it could happen.

“The larger footprint of the Kmart space maybe attractive to some retailers looking to open on Kauai, but who have been unable to because of restrictions on new big-box stores and a lack of existing commercial spaces large enough to accommodate their operations,” Perriello said.

Thursday, Thronas was gearing up for the 2018-19 school season and taking advantage of sales on supplies, as well as snagging a few outfits for her kids.

“The sales are pretty much what you’d expect for a store that’s closing,” she said while pointing out a mirror, some home appliances and other things she’d just purchased in the store. “Nothing staggering, but I got some good deals.”

Representatives from Sears Holdings, owner of Kmart, didn’t return requests for updates on the Lihue Kmart closure but announced the closure in late May.

The exact date of closure has not yet been released, nor has the number of employees affected by the closure.

Just after the closure announcement, Kauai shoppers said amazon.com and other online retailers have already started taking the place of stores like Kmart and have better deals than the brick and mortar stores.

It’s a continuation of “Retail Apocolypse 2017,” and 10 major retailers announced major closures at the beginning of 2018 including Toys ‘R’ Us, Walgreens and Sam’s Club. Starbucks has even announced the planned closure of stores in 2019.

But nationwide, retailers with large spaces and lots of overhead expenses are restructuring their companies. The phenomenon has been studied by several different research companies, like Total Retail, which released an analysis of the industry in 2017.

Their research report focused on “The Amazon Effect” and surveyed retailers on how the online company was impacting them. Results pointed to a total change in delivery and cost expectations.

Data showed nearly 25 percent of retailers’ brick and mortar sales decreased in 2015 and 2016 and 45 percent of retailers believe they’ve still got an advantage over Amazon.

“Amazon is disrupting the retail industry, both online and offline, and its influence only continues to grow,” says Melissa Campanelli, editor-in-chief and content director of Total Retail in a statement released with the report.

She continued: “As such, we decided to survey our audience to find out what retailers really think of Amazon, and how they’re adapting their businesses to better compete with the industry leader.”

Sears has closed five Kmart stores statewide over the past two years and the September Lihue closure will be the end of the retailer’s presence in the Aloha State.

In the May announcement, Sears Holdings representatives pointed customers to other Sears and Kmart locations to continue their shopping and employees in the same direction for continued work with the company.

While there are Sears locations on Oahu, Maui and Hawaii Island, there are none on Kauai.

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Jessica Else, environment reporter, can be reached at 245-0452 or jelse@thegardenisland.com.