The International Market Place confirmed Friday that Target will replace its Saks Fifth Avenue store.
A Saks Fifth Avenue spokesperson confirmed Friday that the company plans to close its Waikiki store, which was an 80,000-square-foot anchor store for the 360,000-square-foot marketplace, this summer.
“These decisions are never easy, but they are the right ones for the company,” the Saks spokesperson said. “We are committed to treating
every associate with respect and fairness throughout the process; all eligible associates will receive appropriate employment separation packages, and transfer
opportunities will be explored where feasible.”
More than 100 associates were on staff when the New York-based luxury retailer opened Aug. 25, 2016, as the company’s first full-line store in Hawaii. The company still operates two discount Saks Off 5th stores, in the Waikele Premium Outlets and Ala Moana Center.
An International Market Place spokesperson said, “Our team sincerely thanks (Saks) General Manager Shelley Cramer and the store team for their outstanding partnership over the past five years.”
The International Market Place spokesperson added, “We are incredibly excited to announce our new anchor tenant — Target — which will open in the next few years. As the store gets closer to opening, we’ll have more specific details to share — including how the shopping experience will be tailored to serve local guests and the grand opening date.”
Target, which has more than 1,900 retail stores across the country, opened its first stores in Hawaii in 2009. The company now has seven stores in Hawaii, where it has plans to grow.
Target also has announced another 128,000-square-foot store for Windward Mall in Kaneohe.
Retail analyst Stephany Sofos said she expects Target will do well at International Market Place because it is reasonably priced and has a wider range of items that will appeal to locals as well as visitors.
“The location for Saks was too dense and too vertical — people don’t like to go upstairs and shop,” she said. “It started out with a bang, but over time it becomes problematic. But I think people will go to Target because it has everything that they need.”
Sofos said even international shoppers from places such as Japan, Canada and Australia are looking for bargains and are patronizing places like Ross Dress for Less and Target.
Retailers have been struggling in recent years, but Target has held its own. The Minneapolis-headquartered retailer delivered $106 billion in total 2021 revenue, having grown nearly $28 billion, or more than 35%, over the past two years.
Brian Cornell, chairman and CEO of Target, said in an investor statement: “Our strong fourth-quarter performance capped off a year of record growth in 2021, reinforcing the durability of our business model and our confidence in long-term profitable growth.
“As we look ahead, we’ll keep investing and delivering on all that has earned the loyalty and trust of our guests; that starts with our outstanding team and includes continued differentiation through affordability, assortment, ease and convenience.”
Target expects to end this year with low to mid-single-digit revenue growth.
