Shirokiya
Encyclopedia
was one of Japan
's oldest companies, as well as the largest retailer during the early 20th century. In the 1950s, it was purchased by another Japanese corporation
and began an expansion overseas, primarily in Hawaii
. However, in 2001, the company was largely dissolved. Today, the only remnant of the original company is the Shirokiya department store
in Honolulu, a division of Shirokiya Holdings, LLC, a United States
-based corporation.
Hikotaro Omura opened a dry goods
store at Nihonbashi
in Edo
, (now Tokyo) in August 1662. Omura called the store Shirokiya Gofukuten, a name that would last until the 20th century. Over the next few hundred years, the store slowly expanded, and as Japan entered the Meiji era, Shirokiya and its main rival at the time, Mitsukoshi
, expanded into selling clothing and other goods in 1886. In 1903, Shirokiya opened a western-style department store, followed by the creation of a larger store down the street eight years later.
The turning point for Shirokiya were a series of natural, financial and man-made disasters that devastated the company's fortunes. The first was the Tokyo earthquake of 1923
that completely destroyed the original department store building (it was then reconstructed with a modern architecture ). This was followed up a few years later by a major fire on December 16, 1932, which destroyed the larger building and caused 14 fatalities. Finally, Shirokiya's assets, mainly centered in Tokyo, were devastated during World War II
and the following occupation of Japan
, whereas Mitsukoshi, spread throughout the nation, fared better.
By 1958, Shirokiya was clearly on the downturn; despite the use of innovative marketing techniques common in the west but unheard of in Japan, Mitsukoshi
had a commanding lead on the retail industry.
, a railway company expanding into the retail industry at that time. In a move to unite all japanese stores under the Tokyu Department Store
chain, the Shirokiya brand then progressively disappeared from Japanese life, culminating with the renaming of the Nihonbashi site in 1967.
But the fusion with Tokyu also resulted in an oversea expansion using the Shirokiya name, that kept using it. On October 29, 1959, the first branch of Shirokiya outside of Japan was opened in Hawaii
's then brand-new Ala Moana Center
. The branch would later move to its present location in Ala Moana, across from Liberty House
(now Macy's
) in 1966. A branch store was opened in Maui
in November 1973. A second branch was opened up at Pearlridge, near Pearl Harbor
, on April 2, 1981.
Though the three stores were popular with both local residents and tourists, the stores had an uneven profit record. By the 1990s, as the Japanese economy collapsed, the Tokyu Group went heavily in debt, up to $470 million up to fiscal year 2001 and having in 1999 to close the historical 330 years old site of Nihonbashi. To further save costs, Tokyu began to shed its overseas businesses, either selling them off or closing them outright. Eventually, attention turned to the Shirokiya stores, with the Pearlridge store closing in March 2001 and the Maui store shuttering in May of that same year.
Customer outcry was immense. Led by Senator
Daniel Inouye
, a petition signed by 30,000 residents of Hawaii and Japan was sent to Tokyu, in the hopes that Tokyu would find a fitting end to the "Shirokiya crisis". News reports both in Japan and Hawaii began to report that Tokyu would simply close all of its retail outlets and sell off its other properties and focus only on its Japanese businesses. This was compounded when Tokyu declined to renegotiate its lease
s for all the stores.
The newly-formed Shirokiya Holdings acted immediately, by streamlining the operations and assets, and the renegotiation of the lease on the remaining store. On November 17, 2002, Shirokiya reopened its doors to great fanfare and then-Governor
Benjamin J. Cayetano declaring the day to be "Shirokiya Day". The following year, on July 14, 2003, Shirokiya Holdings reported a net sales of $35 million.
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
's oldest companies, as well as the largest retailer during the early 20th century. In the 1950s, it was purchased by another Japanese corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
and began an expansion overseas, primarily in Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
. However, in 2001, the company was largely dissolved. Today, the only remnant of the original company is the Shirokiya department store
Department store
A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...
in Honolulu, a division of Shirokiya Holdings, LLC, a United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
-based corporation.
Company overview
Shirokiya, Inc. (the store) is overseen by a seven-person board, all of whom own a part of Shirokiya's parent company, Shirokiya Holdings, LLC. The CEO and President is Japanese native Koji Hayashi, who also oversees the few functions of the company that still remain in Japan. Director and Store Manager Walter Watanabe, as well as the remaining directors, oversee the bulk of the operations, also serving as store senior management.History
Dry goods
Dry goods are products such as textiles, ready-to-wear clothing, and sundries. In U.S. retailing, a dry goods store carries consumer goods that are distinct from those carried by hardware stores and grocery stores, though "dry goods" as a term for textiles has been dated back to 1742 in England or...
store at Nihonbashi
Nihonbashi
, or Nihombashi, is a business district of Chūō, Tokyo, Japan which grew up around the bridge of the same name which has linked two sides of the Nihonbashi River at this site since the 17th century. The first wooden bridge was completed in 1603, and the current bridge made of stone dates from 1911...
in Edo
Edo
, also romanized as Yedo or Yeddo, is the former name of the Japanese capital Tokyo, and was the seat of power for the Tokugawa shogunate which ruled Japan from 1603 to 1868...
, (now Tokyo) in August 1662. Omura called the store Shirokiya Gofukuten, a name that would last until the 20th century. Over the next few hundred years, the store slowly expanded, and as Japan entered the Meiji era, Shirokiya and its main rival at the time, Mitsukoshi
Mitsukoshi
is an international department store chain with headquarters in Tokyo, Japan. Mitsukoshi Ltd. has amalgamated with Isetan Co.,Ltd ,and changed company name to Isetan Mitsukoshi Ltd.- History :...
, expanded into selling clothing and other goods in 1886. In 1903, Shirokiya opened a western-style department store, followed by the creation of a larger store down the street eight years later.
The turning point for Shirokiya were a series of natural, financial and man-made disasters that devastated the company's fortunes. The first was the Tokyo earthquake of 1923
1923 Great Kanto earthquake
The struck the Kantō plain on the Japanese main island of Honshū at 11:58:44 am JST on September 1, 1923. Varied accounts hold that the duration of the earthquake was between 4 and 10 minutes...
that completely destroyed the original department store building (it was then reconstructed with a modern architecture ). This was followed up a few years later by a major fire on December 16, 1932, which destroyed the larger building and caused 14 fatalities. Finally, Shirokiya's assets, mainly centered in Tokyo, were devastated during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
and the following occupation of Japan
Occupied Japan
At the end of World War II, Japan was occupied by the Allied Powers, led by the United States with contributions also from Australia, India, New Zealand and the United Kingdom. This foreign presence marked the first time in its history that the island nation had been occupied by a foreign power...
, whereas Mitsukoshi, spread throughout the nation, fared better.
By 1958, Shirokiya was clearly on the downturn; despite the use of innovative marketing techniques common in the west but unheard of in Japan, Mitsukoshi
Mitsukoshi
is an international department store chain with headquarters in Tokyo, Japan. Mitsukoshi Ltd. has amalgamated with Isetan Co.,Ltd ,and changed company name to Isetan Mitsukoshi Ltd.- History :...
had a commanding lead on the retail industry.
Tokyu era
In 1958 in order to protect itself from a hostile takeover, Shirokiya agreed to be absorbed into the Tokyu GroupTokyu Group
The of companies centers on the Tokyu Corporation railway company, which links Tokyo and its suburbs. Many companies in the group are designed to enhance the value of the Tokyu rail network. In addition to the railroad system, the group includes other companies in transportation, real-estate,...
, a railway company expanding into the retail industry at that time. In a move to unite all japanese stores under the Tokyu Department Store
Tokyu Department Store
is a Japanese department store chain owned by Tokyu Group.-Japan:*Shibuya Honten *Shibuya Toyoko ten *Kichijoji*Tama Plaza*Sapporo...
chain, the Shirokiya brand then progressively disappeared from Japanese life, culminating with the renaming of the Nihonbashi site in 1967.
But the fusion with Tokyu also resulted in an oversea expansion using the Shirokiya name, that kept using it. On October 29, 1959, the first branch of Shirokiya outside of Japan was opened in Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
's then brand-new Ala Moana Center
Ala Moana Center
Ala Moana Center in Honolulu is the largest shopping mall in Hawaii, the fifteenth largest shopping mall in the United States, and the largest open-air shopping center in the world....
. The branch would later move to its present location in Ala Moana, across from Liberty House
Liberty House
Liberty House, headquartered in Honolulu, Hawaii, was a department store and specialty store chain with locations throughout the Hawaiian Islands and on Guam, as well as several locations on the mainland U.S.-History:...
(now Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...
) in 1966. A branch store was opened in Maui
Maui
The island of Maui is the second-largest of the Hawaiian Islands at and is the 17th largest island in the United States. Maui is part of the state of Hawaii and is the largest of Maui County's four islands, bigger than Lānai, Kahoolawe, and Molokai. In 2010, Maui had a population of 144,444,...
in November 1973. A second branch was opened up at Pearlridge, near Pearl Harbor
Pearl Harbor
Pearl Harbor, known to Hawaiians as Puuloa, is a lagoon harbor on the island of Oahu, Hawaii, west of Honolulu. Much of the harbor and surrounding lands is a United States Navy deep-water naval base. It is also the headquarters of the U.S. Pacific Fleet...
, on April 2, 1981.
Though the three stores were popular with both local residents and tourists, the stores had an uneven profit record. By the 1990s, as the Japanese economy collapsed, the Tokyu Group went heavily in debt, up to $470 million up to fiscal year 2001 and having in 1999 to close the historical 330 years old site of Nihonbashi. To further save costs, Tokyu began to shed its overseas businesses, either selling them off or closing them outright. Eventually, attention turned to the Shirokiya stores, with the Pearlridge store closing in March 2001 and the Maui store shuttering in May of that same year.
Customer outcry was immense. Led by Senator
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
Daniel Inouye
Daniel Inouye
Daniel Ken "Dan" Inouye is the senior United States Senator from Hawaii, a member of the Democratic Party, and the President pro tempore of the United States Senate making him the highest-ranking Asian American politician in American history. Inouye is the chairman of the United States Senate...
, a petition signed by 30,000 residents of Hawaii and Japan was sent to Tokyu, in the hopes that Tokyu would find a fitting end to the "Shirokiya crisis". News reports both in Japan and Hawaii began to report that Tokyu would simply close all of its retail outlets and sell off its other properties and focus only on its Japanese businesses. This was compounded when Tokyu declined to renegotiate its lease
Lease
A lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. A rental agreement is a lease in which the asset is tangible property...
s for all the stores.
Modern era
In a surprise move, Tokyu in July opted to sell the Shirokiya company to the seven highest-ranking executives of the Hawaiian store for the amount of $1 (one dollar) taking a $23 million loss. The deal, which included the rights to build a future expansion at Tokyu's lone remaining Hawaii asset, the Shirokiya Department Store at Ala Moana Shopping Center, ensured the survival of Shirokiya, though there were some reports in the Japanese media about the loss of one of Japan's oldest companies to the U.S.The newly-formed Shirokiya Holdings acted immediately, by streamlining the operations and assets, and the renegotiation of the lease on the remaining store. On November 17, 2002, Shirokiya reopened its doors to great fanfare and then-Governor
Governor of Hawaii
The Governor of Hawaii is the chief executive of the state of Hawaii and its various agencies and departments, as provided in the Hawaii State Constitution Article V, Sections 1 through 6. It is a directly elected position, votes being cast by popular suffrage of residents of the state...
Benjamin J. Cayetano declaring the day to be "Shirokiya Day". The following year, on July 14, 2003, Shirokiya Holdings reported a net sales of $35 million.
External links
- Shirokiya official website
- Old Tokyo: Shirokiya Department Store
- Shirokiya called more than a store, Honolulu AdvertiserHonolulu AdvertiserThe Honolulu Advertiser was a daily newspaper published in Honolulu, Hawaii. At the time publication ceased on June 6, 2010, it was the largest daily newspaper in the American state of Hawaii. It published daily with special Sunday and Internet editions...
, January 23, 2000 - Shirokiya bids aloha to Pearlridge store, Honolulu Star-BulletinHonolulu Star-BulletinThe Honolulu Star-Bulletin was a daily newspaper based in Honolulu, Hawaii, United States. At the time publication ceased on June 6, 2010, it was the second largest daily newspaper in the state of Hawaii...
, February 6, 2001 - Saving Shirokiya, Honolulu Star-Bulletin, July 14, 2002
- Tokyu Department Store Co., Ltd. Company history
- Tokyu Department Store corporate information (in japanese)