Upscale natural food grocer Whole Foods Market doubled its plans for expansion in Hawai'i yesterday, saying it will open stores in Kailua and Kahului, Maui, in addition to outlets planned for Kahala and Kaka'ako.

Whole Foods has become the latest Mainland retailer with plans for rapid expansion in the Islands. Drugstore giant Walgreen Co. said in June it plans to eventually open as many as 40 stores in the state, including four on O'ahu by early next year.

Whole Foods' Kailua store will be the fifth grocer within a short walking distance in the Windward O'ahu town. It will compete with Foodland, Times, Safeway and Don Quijote.

The planned 40,000-square-foot Whole Foods Kailua location, next to the Longs Drugs Store, will be nearly the same size as the Kailua Safeway and larger than the Foodland.

The store is scheduled to open in 2010 and will help drive the redevelopment of prime Kailua real estate.

The store will be built on land that now houses a First Hawaiian Bank branch, a former Straub clinic and several small shops such as SuperCuts.

The First Hawaiian branch will move to a new, larger building near the current location. The branch will remain in operation during the redevelopment.

At least one nearby store owner and future Whole Foods customer welcomed the change.

"It's going to turn Kailua into a real pedestrian-friendly town," said Gail Allen, owner of Island Treasure Art Gallery, which is among 15 stores that will have to relocate or close to accommodate Whole Foods. "No one wants to see Kailua grow, but it's inevitable that towns will see some change. I love Whole Foods, and I'm looking forward to eating there."

Whole Foods is working with landowners Castle Family LLC and Kaneohe Ranch to redevelop the Kailua site. Work at 705 Kailua Road is expected to start in 2008 on the new First Hawaiian Kailua branch. Construction on the Whole Foods store is slated to begin in February 2009 and will require the demolition of three existing buildings and the old First Hawaiian Bank branch.

Businesses that currently occupy the future home of Whole Foods have about a year and a half before having to move, said Kimo Steinwascher, vice president for leasing and development at Kaneohe Ranch.

"They could remain there for 18 more months, or they could move in a month," he said. "We'll work with them to try to find new locations. There's room for them in Kailua."

BIG PLANS

The Kailua Whole Foods will be the chain's second-largest Hawai'i location announced so far. Still, the location would be slightly smaller than Safeway's 41,000-square-foot Kailua location, but larger than a nearby 30,000-square-foot Longs Drugs store and a 32,000-square-foot Foodland store. Whole Foods' typical Mainland store ranges between 45,000 and 50,000 square feet, the company said.

Focusing on organic and natural produce, Whole Foods has a potential to increase demand for locally grown goods. Whole Foods has announced that it signed up about 20 local product suppliers to help stock its first Hawai'i store, which is scheduled to open next spring at Kahala Mall. MA'O Organic, Poamoho Organic Produce and Hamakua Springs Country Farms are among the local growers that will provide produce for the 26,000-square-foot store.

"We look forward to working with local vendors and stocking our shelves with as many made-in-Hawai'i products as possible," said Michael Besancon, president for Whole Foods' Southern Pacific Region, in a news release. Besancon said about 75 percent of the chain's produce comes from family farms.

The natural and organic foods supermarket continues to seek local partners, including farmers and food producers.

"I think this is a huge opportunity for local farmers, especially us," said Dean Okimoto, owner of Nalo Farms in Waimanalo, in the news release. "The fact that they're opening a third store (on O'ahu) indicates that they have faith in what Hawai'i farms and businesses can produce."

SIGHTS ON MAUI

In addition to the Kailua store, Whole Foods yesterday said it was opening a 26,300-square-foot Kahului store at the current Star Market location at the Maui Mall in late 2008 or early 2009.

In early 2008, Whole Foods expects to open its first Hawai'i location in the former Star Market space at Kahala Mall.

A fourth Whole Foods store is expected to be the anchor tenant at the $100 million-plus redevelopment of Ward Village Shops. The Ward store will be a 67,000-square-foot market that initially was projected to open next year, though repeated construction delays related to discovery of old Hawaiian remains have set back plans.

Reach Sean Hao at shao@honoluluadvertiser.com.