What Went Wrong at Hilo Hattie

Can “The Store of Hawaii,” Hilo Hattie, keeps its island identity following their just announced sale to a California discount hair salon owner?

It’s sad to see the end of a 45 year era. We have been hearing for some time, however, that Hilo Hattie was in financial trouble. Their problems included:

  • Reduced discretionary buying by visitors, especially from Japan.
  • A switch from mostly Hawaii-made to less in demand, lower quality, foreign-made garments.
  • Inability to keep pace with other Hawaii clothing designers.
  • High expenses and a tightening credit environment.
  • Failed expansion attempts in Orlando and Las Vegas.

Hilo Hattie has been a Hawaii tradition since 1963. It was founded on Kauai as Kaluna Hawaii Sportswear, and renamed after actress Clarissa Haili, following her death in 1979.

Unfortunately, a lack of design and quality ended up placing them in competition with Wal-Mart.

We don’t know what the future will bring for Hilo Hattie, or their planned 20,000 square foot flagship store at Royal Hawaiian Shopping Center. We’re hopeful and wish their employees and the new owners all the best.

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4 Comments

  1. Pua (4 years ago)

    A similar thing happened recently to Reyn’s, one of the top traditional and original stores of Hawaiian Shirts and Aloha Shirts on the islands. The Hawaiian founder Reyn Spooner sold to a CA owner (no discount hair salon though). We couldn’t believe it and just hope that the great quality of these shirts will stay the same. Keoki’s aloha shirts from Reyn’s have always been the best. Aloha, Pua

  2. pau (4 years ago)

    Reyn Spooner started marking ALL of their product in Korea about three years ago. I stopped buying it then and switched to Tori Richard, Kahala and Iolani. They still make made in Hawaii product!

  3. Gene (4 years ago)

    I was a tour guide on Maui and Big Island for years with Polynesian Adventure Tours (little plug for the old gang), and I guess we all saw this coming for Hilo Hattie. Sad, but … .

    Not saying they’re pau, but they really need to catch up.

    On a positive note, they’ve always been very generous and courteous to the tour guides/bus drivers/escorts.

    Really like your site. Great presentation.

    Gene aka Kiniguy

  4. Lauren (3 years ago)

    Reyns quality is still one of the best. I sell Reyn Spooner and Tori Richard. The fabric, design and quality hasn’t changed. Many of the major hawaiian shirt companies outsource(mostly silk shirts). Most of my personal shirts are spooners. I hope they keep the tradition and yes maybe lower the price.