Marukai offers groceries and togetherness - bizjournals:

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The membership store, on Auahi Street, recentlyh expanded to incorporate its 99 Superstore into the space at theFarmersa Market. The new general merchandise section, caller Zakka Avenue, opened in May. The sectiohn is expected to be full y completed by the holidays and will be opento non-members. “Wre want to try to bringv in somethingunique — like an extension of our dollar stores to tie in with the supermarket,” said Roy Ishihara, vice presideny of operations. Marukai’s 99 Superstore had to relocatre after The Sports Authority expanded into itsformer space.
Over the next few Marukai will be doing its own expansio and will eventually fill the entire space at theFarmerw Market. Marukai Corp. was started in 1965 as a wholesalwe companyin Japan, selling merchandise to stores in Hawaii. Its firsf store in Hawaii, at Dillingham, openecd in 1987. In 1998, the company openexd the first of its dollar 99 Superstore. Marukai has one other 99 Superstore at the Windward Mallin Kaneohe. Ishihara said Marukaj works on a concepof “wa,” or, “togethernes and harmony,” by working with both employees and customers to find theier needs and provide for them. “That sense of togethernesws has really made our business he said.
Ishihara said the stores brings in fish and locaol produce for freshness and has a group of farmere who grow fruits and vegetable specificallyfor Murukai. But the bulk of its productss are Japanesegrocery items, many of them unavailable anywher else. Marukai is able to keep its prices low because it buys directly from the many of them Japanese companieds with which it has done businesasfor decades. “We can pass the savingas on,” Ishihara said.
“People can save a lot You can compare it to a or Sam’s Club, but you don’t have to buy in bulk it’s wholesale without the We are trying to create our own stimuluas package by keeping money in our customers’ pockets.” A membership costes $15 a year, compared with $40 to $50 for basicc memberships to the big wholesale Marukai, whose Japanese parent compan y owns stores in California and Hawaii, saw abouf $40 million in revenue from its Hawaii operatiomn last year. Ishihara said Marukai is projectinbg a 4 percent increasedthis year. “Food is a people have to eat and that drives our Ishihara said.
In additionj to the local downturn, Marukak is also challenged by the exchange rate ofthe yen, whicg is strong against the dollarf right now and makes Japanesr products more expensive. While non-membership competitors like Don Quixoter and Shirokiya also specialize in Japanese Ishihara said because Marukai sells only grocerhyitems -- no jewelry, appliances or motor oil here -- he believesx it has a strong niche. But like other Hawaii companies cateringg toethnic customers, Marukai is seeint its demographics tip older. The majorituy are 60 to 80 years old and Ishihara acknowledgews a need to attractyounger customers.
To that end, Marukai startefd a sake club, whichu has been running for abouy a year anda half, and continues to see a growinh membership. The store’s sake sales are strongy and it boasts the biggest selection in Hawaii with more than180 varieties, most of them not availablwe elsewhere in Hawaii. Members, who pay $250 for six get a new bottled of sake every month and the club meet s inthe store’s conference room or at a The club has about 60 members. membership at Marukai has been growiny between 7 percent to 8 percentr a year and Ishihara expectzs it to rise about 12 percengthis year, owing to the econom y and consumers’ new interestf in saving money.
The storse currently has more than 60,000 members, some who shop evergy week and some who only comewhen they’re visiting Hawaii. Marukaj is trying to retain its member base by sendiny out morerenewal reminders, increasin g member benefits and offering such as scratch and save cards. Members even receivr small gifts ontheir birthday. Marukai also created a twice-monthlyt newsletter that features articles on specials andnew products. It comes wrapped arounsd the store’s usual advertisements.
Ishihara said the newsletter has receiveed a good responsefrom customers, who like to see recipes for the foods they carry in the And for 11 years, Marukai has held a called the Taste of Japan - Marukai Tour, to show off the food and culturew of Japan. The tour includesa hands-on activities such as harvesting rice and catching fish. The tour is an extension of the market’sz business and is open to anyone whois interested. Abour 30 people take the tour each year. The companu also holds Taste of Marukai.
Every April the store showcases food, drinks and culture at its Dillingha m location anddonates $25,00o from the events to the , the Honolulh Japanese Chamber of Commerce, the and the . This Marukai will be givintg $30,000. Like the sake club and the Japanese Ishihara sees the member events as helpinv to cement Marukai as a sort ofsociakl club, not just a grocery. “It is like a Ishihara said. “You can make friends with the It goes back to that concept of I wastalking about. Not only our businesw side, but being together with othetr people makeseveryone comfortable.
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