The Hawaii Department of Transportation (HDOT) has selected New York-based International Shoppes (iShoppes) to operate the specialty retail and duty free concessions at Honolulu’s Daniel K. Inouye International Airport (HNL) and Kahului Airport (OGG), the main airport in Maui.
In January, incumbent concessionaire DFS (formerly Duty Free Shoppers) had announced that it was exiting the Hawaii market after “after 63 remarkable years.”
Under a 10-year contract, iShoppes, along with business partner Ben Crump Enterprises, will take over the shops that are currently operated by DFS Hawaii at both HNL and OGG.
The iShoppes contract becomes effective on April 1. International Shoppes will also open two new spaces in the Mauka Concourse of Terminal 1 at HNL that will offer specialty retail.
TMI had the opportunity to speak with iShoppes co-CEOs Scott Halpern and Matthew Greenbaum about the new concession contracts.
“With this contract, iShoppes is now officially across the entire United States of America, from sea to sea,” quipped Halpern. International Shoppes, which will celebrate its 75th anniversary this year, operates duty free and specialty retail stores in New York’s JFK International Airport, Washington, D.C.’s Dulles International Airport, Baltimore’s Thurgood Marshall Airport, Hartford’s Bradley International Airport and Houston’s George Bush Intercontinental Airport.
“It is a very large project, covering about 29 stores between the two airports,” added Greenbaum. “There are seven stores in Maui and more than 20 in Honolulu. Maui is specialty retail because it does not have international service. But Honolulu is specialty retail and duty free.”
The iShoppes executives are particularly excited about the potential of the new concessions, and the strong community heritage that surrounds the operation.
“DFS has done a fantastic job over their 60-plus years of operating in Hawaii. They are a household name here. Our goal is to take that legacy and the baton that they’re passing to us and really become a part of the community,” comments Halpern.
“That’s important for us anywhere that we go, but it’s especially important in Hawaii. Everywhere we go here, people we meet tell us ‘my cousin worked there; I worked there; my very first job out of high school is there.’ DFS is an institution, and our goal is to become that same institution.”
International Shoppes intends to renovate the existing DFS spaces and will remain open for business while it finalizes its renovation and construction plans.
“Our goal is to ramp up operations and make sure that the team that’s in the fields knows that we’re investing in the property,” adds Greenbaum.
‘We’ll be assuming the operation April 1. On April 2, we will start to figure out which stores we touch first and go through a process of renovating and making the proper changes to benefit the customer experience,” says Halpern.
Creating a Hawaii Sense of Place
In addition to national and international brands, iShoppes plans to showcase products from across the state of Hawaii, which will provide opportunities for local businesses and artisans to reach new customers and gain international exposure.
“There’s a tremendous local craft community in Hawaii. A vast majority of the products are sold by local businesses. We will continue that spirit of carrying local products and giving local businesses an opportunity to showcase themselves to the world,” says Halpern.
The Hawaii airport stores will also carry a full assortment of beauty, liquor, tobacco and confection assortments, which will be facilitated from iShoppes operation in Valley Stream, New York.
“We’ve gotten overwhelming support from the industry on this project since it was announced,” said Greenbaum and Halpern. “And the Hawaiian Department of Transportation has really welcomed us with open arms and made us feel extremely welcomed. As a business coming in, we’re very grateful for the opportunity they’ve given us, and the partnership that we have formed in such a short period.”
“This new partnership with International Shoppes will bring an elevated retail experience to the Daniel K. Inouye International Airport and Kahului Airport,” said Hawaii Department of Transportation Director Ed Sniffen. “We welcome International Shoppes’ investments in our state and appreciate its commitment to support island businesses and artisans by featuring Hawaii products and crafts alongside premium international brands.”
“International Shoppes has spent generations building airport retail programs rooted in integrity, partnership, and long-term sustainability for all stakeholders,” concluded Greenbaum. “We are honored to work alongside HDOT at HNL and OGG as we build upon DFS’s remarkable legacy and invest in a future that celebrates Hawaii, its people and its culture.”
“This is a rare opportunity to be a long-term steward of two of the most important gateways in Hawaii,” added Halpern. “We’re committed to investing in the airports, the local business community and the teams on the ground. Our vision is to make HNL and OGG a reflection of the islands’ creativity, craftsmanship and welcoming spirit not just for the airport authority, but for the team that works in the field and most importantly, for the customers traveling through every day.”
