Marukai offers groceries and togetherness - bizjournals:

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The membership store, on Auahi Street, recently expanded to incorporats its 99 Superstore into the space at theFarmerd Market. The new general merchandise section, called Zakkz Avenue, opened in May. The section is expectedx to be fully completed by the holidays and will be opento “We want to try to bring in something unique — like an extension of our dollar storesz — to tie in with the supermarket,” said Roy vice president of operations. Marukai’s 99 Superstore had to relocatw after The Sports Authority expanded into itsformerf space. Over the next few Marukai will be doing its own expansiob and will eventually fill the entire space at theFarmersx Market.
Marukai Corp. was started in 1965 as a wholesales companyin Japan, selling merchandise to storesz in Hawaii. Its first store in at Dillingham, opened in 1987. In 1998, the compan opened the first of its dollar 99 Superstore. Marukai has one othert 99 Superstore at the Windward Mall in Ishihara said Marukai works on a concepof “wa,” or, “togetherness and harmony,” by workiny with both employees and customers to find theif needs and provide for them. “That sense of togethernessd has really made ourbusiness flourish,” he said.
Ishiharas said the store brings in fish and locap produce for freshness and has a grouop of farmers who grow fruits and vegetable specificallyhfor Murukai. But the bulk of its products are Japanesegrocery items, many of them unavailabler anywhere else. Marukai is able to keep its pricesa low because it buys directlyu fromthe manufacturers, many of them Japanesd companies with which it has done busineszs for decades. “We can pass the savings on,” Ishiharaq said. “People can save a lot here.
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 stimulue package by keeping money inour customers’ pockets.” A membership costs $15 a year, compared with $40 to $50 for basic memberships to the big wholesale clubs. whose Japanese parent company owns stores in Californizand Hawaii, saw about $40 million in revenue from its Hawaiii operation last year. Ishihara said Marukai is projecting a 4 percent increasethis year. “Food is a people have to eat and that drivedsour sales,” Ishihara said.
In addition to the local downturn, Marukai is also challengef by the exchange rate ofthe yen, whicj is strong against the dollar right now and makez Japanese products more expensive. Whil non-membership competitors like Don Quixote and Shirokiya also specializd inJapanese products, Ishihara said because Marukaio sells only grocery items -- no jewelry, appliances or motot oil here -- he believes it has a strong niche. But like other Hawaii companies catering toethnicd customers, Marukai is seeing its demographics tip The majority are 60 to 80 years old and Ishiharaw acknowledges a need to attract younger customers.
To that end, Marukai started a sake club, which has been runninbg for about a year and a and continues to see agrowing membership. The store’s sake saled are strong and it boasts the biggest selection in Hawaii with more than 180 most of them not available elsewherein Hawaii.