Hilo handmade shop closes storefront as costs squeeze local retailers
Mattie Larson closed Upcycle Hawaii’s Hilo storefront, but the handmade, zero-waste shop kept going at Hilo Farmers Market three days a week as costs climbed.
Upcycle Hawaii shut its Hilo storefront and shifted to a lower-overhead model, a sign of how quickly rising costs are reshaping retail on Hawaii Island. Founder Mattie Larson kept the handmade, women-owned, sustainable and zero-waste business selling at the Hilo Farmers Market three times a week, but the move took one more brick-and-mortar shop out of Hilo’s daily mix.
The closure did not come from a fading side hustle. Over eight years, Upcycle Hawaii rescued nearly 1,500 pounds of trash from the landfill, and Larson said she continued to employ three other women part time while working full time herself. The company brought in about $160,000 in a typical year, up from roughly $60,000 in annual revenue in 2019, and it reached $200,000 in profits in 2023. That growth made the storefront pullback more telling: even a business with a clearer sales track and a strong environmental brand chose to cut fixed costs to stay viable.
The move fit a wider squeeze across Hawaii’s economy. A Chamber of Commerce Hawaii survey found 86% of local businesses were directly affected by tariffs and trade policy changes, 91% reported higher costs of goods, 65% had raised prices and more than half expected profitability declines of more than 10%. UH Economic Research Organization warned in its 2025 second-quarter forecast that sharp tariff increases, federal layoffs and volatile policy shifts were undermining consumer confidence and worsening the state’s business outlook, with a mild recession among the risks.
Hilo has long depended on small retailers, market vendors and neighborhood storefronts to give the town its rhythm. When a shop like Upcycle Hawaii gives up its physical space and leans on the farmers market instead, shoppers lose one more in-person stop, and the commercial corridor loses another reason for foot traffic. The business remains open, but its shift shows how many local owners are now choosing the cheapest surviving format rather than the most visible one.
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