Retail footwork: Lamey-Wellehan, battling competition, remains 'fast on our feet'
Photo / Russ Dillingham
Don Stowell (left) and Jim Wellehan at Lamey-Wellehan Shoes, an Auburn-based retailer that has stayed healthy despite competition from big-box retailers and online shoe sellers.
While many brick-and-mortar retailers were hurt by the recession and by competition from online sellers, Maine's largest independent shoe store chain marked its 100th anniversary recently with another year of growth.
“With fuel prices dropping, our growth is accelerating,” says President Jim Wellehan. “We'll be up double digits, against good sales last year.” Wellehan predicts gross revenues for his six stores to be “in the low $11 million range” with sales nearing $12 million next year.
In fact, Lamey-Wellehan — facing competition from discounters, big-box stores and online retailers like Amazon and Zappos — hasn't had a sales decline since the early 1990s.
“Being fast on our feet” has been a factor, Wellehan notes. “Things are changing all the time. You've got to be flexible and willing to change, too.”
Operations Manager Don Stowell adds, “We've followed our customer as well as tried to lead. We added online sales when we saw it coming seven years ago, but we're not seeing as much impact as you might think. The smaller store experience is more appealing again to customers. People like to feel the product; there's an emotional connection they can't get on the Internet. Also, each foot is unique — customers need to try on shoes to get a good fit.”
Precision fitting, particularly for children, has been integral to the success: kids come to the store with family members who also buy shoes, and it keeps staff focused on the complex nuances of comfort — and customer service.
“Fitting for kids is difficult and detailed,” Stowell says. “But we feel we have a community obligation to have footwear for children. Working with children, you learn to be kind, thoughtful and careful. That springboards to how we treat all customers.”
A focus on service has given Lamey-Wellehan an edge over big-box retailers, too, its leaders say. All six stores feature up-to-date fitting equipment, and many on the sales staff are certified as pedorthists. “We can be more nimble than the big boxes,” Stowell says. “This past winter went on forever; many retailers were out of boots. We worked with our suppliers, brought in more and had a great extended season.”
Lamey-Wellehan offers product for all ages and genders, and recently expanded its customer base by working with corporations and municipalities to fit employees. “Being 'a general store' for shoes means we're inventory-heavy, and that's a challenge,” Stowell says. “But in Maine you have to do a little bit of everything well to survive.”
On the balance sheet, the company cut costs by recycling and reducing energy usage. “In 2003, we spent $91,000 on energy. In 2013, after adding 7,000 square feet, we spent $79,000,” Wellehan says. “There are costs, but when we think, 'Can we afford it?' we also think, 'Can we afford not to do it?' The sea level's rising and we can do something about it. What do we want to tell our grandkids? That we kept on the same old way and didn't care?”
Wellehan advocates for a ban on plastic bags and recently adopted a 'no bags' policy. From the money saved on store shopping bags, the retailer added the difference to the college scholarships it has offered for 20 years. Wellehan is an outspoken supporter for increasing the minimum wage, and walks the talk. Sales staff earn a base wage against commissions, with the lowest earners making $11.90 to $19 an hour. “Managers make mid- to high-40s [annually],” Wellehan says. “I expect it'll crack $50,000 next year for some.” He speaks proudly and appreciatively of his employees, noting, “Everyone has a voice, ideas come from everywhere, and everyone wears lots of hats. That works really well for us.”
An energetic 76, Wellehan loves his work and isn't eager to retire. “Next year, I'll be goofing off more, but won't be completely out. My wife Kathy and I own the company; our kids have other interests. We'll transition to some form of employee ownership,' he says. “We have 100 employees. These are good people and I care about them. When a company gets sold to a larger entity, they stop being part of the community. That's not good for anyone. If we continue to prioritize the people, customer and community — and find ways to help people and contribute — we'll do fine.”
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