Hale Kauai closing Kawaihau store

KAPAHI — Hale Kauai Ltd., the oldest hardware and home construction supply company operating on Kaua‘i, is closing its Kawaihau Road store Friday, Oct. 15.

Citing a lack of continued residential growth in the area, and a location where few people are willing to shop off the beaten path of Kuhio Highway, the company is shutting its doors on their Kawaihau Road location, but keeping open their Koloa town store.

“Everyone knows that in retail, it’s all about location, location, location,” said Tom Rietow, Hale Kauai chief executive officer. “Well, this location is a tough place to be, especially in our business.”

The Kawaihau property, which includes a large retail store and a lumber yard/storage area, is being sold to Aloha Lumber Company for an undisclosed sum. The deal is in escrow. Aloha has already poured some 1,000 yards of concrete in constructing a 20,000-square-foot dry-storage and loading/unloading site at the Kawaihau Road location.

The closure of the Kawaihau Hale Kauai store was a long time in coming. Business had dwindled during the four years the location was in operation, Rietow said, and the company found itself focusing on their retail operations.

Hale Kauai owners around a year ago sold the company’s Nawiliwili building and lumber yard and brick-making operation, and Halfway Bridge concrete batch plant, to a partnership of Jas W. Glover Ltd. and Honsador.

“When we sold the heart and soul of the business — the ready-mix and lumber businesses — we became a true hardware store,” Rietow said.

With their attention on retailing, Hale Kauai leaders more than ever had to rely on customers to come from far and near to purchase basic household supply items, instead of relying on a steady stream of residential buyers and builders looking for ready mix (concrete) and lumber.

“We had to rely on customers coming to us,” Rietow said.

But being three miles up Kawaihau Road discouraged customer traffic, and customers more often chose one of Hale Kauai’s competitors, such as Aloha Lumber in Kapa‘a, Honsador in Nawiliwili or Home Depot at Kukui Grove.

Rietow insists that the presence of super store Home Depot had little to do with the demise of their four-year-old location.

“Home Depot was not a big factor in this decision at all,” Rietow said. “This year started to slow. Sure, Home Depot took part of the market share, but not enough. There just are not as many houses being built in this area.”

In a final effort to drive customers to their out-of-the-way location on Kawaihau Road, Hale Kaua‘i joined forces with Senter Petroleum to build a gas station in front of the retail store, selling gas at a reduced cost.

But licensing and permitting snafus stalled the project, and Rietow thinks customers viewed the unfinished gas tanks as a potential safety problem. Finally, after four years and a long-suffering bottom line, company officials decided to sell.

“They decided on a change of direction for their company,” Rietow said. “As things evolve, not everyone wants to be in this business.”

At one time, there were 16 full-time workers at the Kawaihau location. Today, they’re down to six, and all of them have been given other jobs within the company, or with similar businesses.

Meanwhile, Aloha Lumber, flush with a steady and loyal stream of residential and commercial customers, is basking in a boom time.

“Times are good,” said Randy Boyer, Aloha Lumber president. “Residential business is really brisk, and the outlook is positive.”

Started in 1980, Boyer’s company now employs 28, and spreads out over four locations, including the new 20,000 square-foot storage site on Kawaihau Road.

Boyer isn’t concerned about the location of the new site, mostly because there are no plans as of yet to open a retail operation there. For now, the company will focus on using the area as a site for dry storage and container loading and unloading. As for the gas station, Boyer said Aloha Lumber hopes to complete it by year-end.

A big part of Aloha’s success is their drafting, planning and bonding department, Boyer said, where six full-time drafters sketch out plans and projects.

Aloha Lumber has developed the reputation of being a company that can get the job done, even with tight deadlines, Boyer said.

“Someone might call at 2 p.m. and want a delivery the next day in Waimea. We can handle that job effectively,” Boyer said.

It’s that kind of confidence, built on a solid reputation, that has Boyer unafraid of competition from the likes of Home Depot, and looking forward to more success here on Kaua‘i.

“Home Depot is great for the economy because they sell products that we choose not to sell,” Boyer said.

Workers at Hale Kauai’s Kawaihau location are selling everything at cost until they close their doors Oct. 15, a sale that has generated lots of traffic to the store this week.

Hale Kauai was founded in 1945, and is still owned by the same three long-time Kaua‘i families: Ellis, Wilcox and Moragne.

Phil Hayworth, business editor, may be reached at 245-3681 (ext. 251) or phayworth@pulitzer.net.