Local retailer Hilo Hattie plans to open a new flagship O'ahu store in Waikiki as an anchor tenant at the Royal Hawaiian Shopping Center.

The move ends the retailer's lengthy quest to establish a Waikiki location, and adds another strong tenant to the shopping center undergoing an $84 million renovation that is attracting big names in retailing, dining and entertainment.

Hilo Hattie has yet to decide whether to close the retail portion of its Nimitz Highway facility near City Mill, but the Nimitz location will continue to house its manufacturing, distribution and e-commerce operations.

The new two-story store with 29,000 square feet of space is 25 percent bigger than the Nimitz store, and is scheduled to open in early summer 2007 next to the Cheesecake Factory.

"Moving to Waikiki represents a new chapter in the 43-year history of Hilo Hattie," Paul deVille, president and CEO of Hilo Hattie parent Pomare Ltd., said in a statement. "Waikiki is the hub of the visitor industry, and we are committed to be part of the growth of this dynamic business."

Six years ago, Hilo Hattie announced plans to open a 20,000-square-foot Waikiki store on the site of the former Hula Hut on Beach Walk. But in mid-2001, after buying the property and demolishing existing buildings, the retailer canceled its plan and later sold the property.

The Royal Hawaiian Shopping Center store will feature Hilo Hattie's signature Hawaiian apparel, gifts, souvenirs, jewelry, T-shirts, home furnishings and other accessories.

Store plans also include live Hawaiian music, a free shell lei greeting, refreshments, food and coffee tastings and craft and fashion demonstrations.

Other tenants slated to join the center include Kate Spade, L'Occitane, Tourneau, Senor Frog's and P.F. Chang's.

Hilo Hattie operates seven stores in Hawai'i and four on the Mainland.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.