HONOLULU -- Safeway plans to build a brand new store on Beretania Street at the site of the former Schuman Carriage auto dealership, KITV has learned.

Safeway said its old store on Beretania is too small. It plans to build a new one right next to another supermarket competitor.

Safeway said it is "very close" to purchasing about 3 acres of land under the former Schuman Carriage auto dealership. Safeway plans to demolish the iconic building put up in 1960 and build a 60,000-square foot store with parking on the street level and the store above it.

Safeway would close and likely sell its old store, just a couple of blocks down Beretania, to another retailer.

"The reason that we want to do it, of course, is that the existing store is just undersized and it's in dire need of modernization," Safeway Real Estate Manager Deborah Karbo said.

Safeway's real estate manager made a presentation to the Makiki Neighborhood Board on Thursday night. She told the board that the old store has 100 employees and Safeway plans to double the payroll at the new store.

Safeway shoppers KITV spoke with said they welcome the upgrade.

"When it gets really crowded during the busy hours there's a lot of wagon bumping and elbows," shopper Chad Taylor said.

"As long they don't raise the prices, I wouldn't mind, but I'm afraid that's what they're going to do," shopper Glen Winterbottom said.

The new market would be similar in size to Safeway's Kapahulu Avenue store, which opened in 2007.

The new Safeway's Beretania location is right next to Times Supermarket, and Times shoppers worry about the fierce competition.

"It will be a lot bigger and Safeway is cheaper. I think people might get laid off over here, or they might just shut down. It will be big competition," Times shopper Leioalani Contemplo said.