KITV4-article

This is a prime example of what happens when big mainland stores enter the neighborhood -- they push out locally owned stores!

Now think about the effects a Target store would have on Kailua Town!

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January 3, 2011

Struggling Pet's Discount Closes Half Its Stores

Kapahulu, Hawaii Kai, Kaneohe Stores Closing

HONOLULU -- Locally-owned pet store Pet’s Discount is closing three of its Oahu locations, hoping to keep its other three stores open in spite of being buffeted by the recession and competition from a mainland big box pet retailer.

At Pet's Discount warehouse store in Salt Lake, across from the Target store, there are plenty of cute animals, like golden retriever-husky mixed puppies for sale, along with birds, bunnies and fish.

But there aren't many customers these days. The store was virtually empty Monday evening, often with more employees than customers.

"They're friendly. And prices are competitive, and I don't want to give the business to the mainland people," said customer Laarnie Dukes, of Red Hill.

"We are locally owned and operated,” said Ricky Baker, Pet’s Discount’s chief operating officer. “We try to let our customers know that. The employees that work in our stores have family here. They've grown up here. And we're just asking for support from the local community to keep us around a little bit longer."

Pet's Discount closed its Kapahulu store at Market City last month, shut down its Hawaii Kai store Monday and will close its Kaneohe outlet next week.

"We're trying to consolidate our operations. For some time now, we've been struggling. I think our customers have known that. We're trying to keep our stores stocked for them and we cannot do that with the number of stores that we have," said Baker.

But its headquarters warehouse store in Salt Lake and its Waikele store will remain open. Its Waikele employees printed fliers they've put up in other Waikele stores, reminding potential customers they’re still open.

"So that people know, you know, hey we're still here. Come on out, come help us stay in business. Help us stay open," said Jennifer Chang, manager of the Waikele and Kaneohe stores.

Just three years ago, Pet's Discount said it went through three times as much inventory compared to today. Some of its stores' shelves are empty because the stores couldn't afford to buy inventory.

Baker blames the recession and competition from mainland retailer Petco, which opened stores in Pearl City and Kapolei since March of 2009.

"It's been a struggle, a struggle for cash flow to be able to keep the supplies coming in and as a result, we lose customers. And if we lose customers, then we don't have the cash flow to bring more supplies, so it's a vicious cycle," Baker said.

Baker said he may have to close the Waikele store in the next month or so as well if business doesn't pick up there soon.