Lamey Wellehan is a family-owned shoe store that has been operating in Maine for 100 years. It has 6 store locations across the state and approximately 100 employees. The document discusses Lamey Wellehan's history, products, competition, strengths, weaknesses, and future plans. It predicts that short-term profits may decrease slightly as costs increase due to planned store relocations, but long-term revenue and profits will rise as the economy strengthens and new store locations boost sales.

1. Lamey Wellehan
Maine’s Family Shoe Store, 100 Years Strong
Taylor Banister
EC211

2. Getting to Know… Lamey Wellehan
• Location
 Headquarters: Auburn
 Stores: Augusta, Auburn, Brunswick, Falmouth, Bangor, and Scarborough
• Sector: Footwear
• Why Lamey Wellehan?
 Small Maine business operating for 100 YEARS!
• Size: Approximately 100 employees, 5% annual turnover rate
• Products and Services:
 Footwear, shoe care products, inserts, socks, and handbags
 Mild shoe repairs and stretching

3. Financial Growth
0
1
2
3
4
5
6
7
8
9
10
11
2011 2012 2013
DOLLARS
Millions
YEAR
Profit Cost Revenue

4. Blast from the Past
• Length of time in operation: 100 Years
• Diversification in products/services:
 Shoes for everyone in the family
 Sales associates that are trained in fitting and product knowledge
• Changes in legal structure:
 Started as a partnership between two men
 Now a proprietorship
• Changes in ownership:
 Originally owned and founded by Charles A. Lamey and Daniel J.
Wellehan in March 17, 1914
 Handed down to Jim Wellehan in 1976

5. Strengths Weaknesses
Trained sales associates in fitting Smaller stock space – limits on
variety and size availability
Customers have ability to try on and
see product before purchasing
Middle-man
Quality products Limited shipping abilities and
movement of product
Sales associates have strong product
knowledge
Higher price points
One-on-one attention available to
customers
Products sold have high elasticity

6. The Competition
• Types of Competition
 Online
 Other shoe retailers
• Competitors
 Super Shoes
 Reny’s
 Kohl’s
 Dick’s Sporting Goods
(other athletic stores alike)
 Online shoe retailers
 Amazon
 Brand websites

7. Mission to minimize…
Environmental Impact
• Eliminated use of plastic bags within stores
• 2 out of 6 of the stores are solar powered, soon to be 3
• Recycle paper and plastic

8. Analysis
• Industry norms:
 Sales associates who just retrieve product from stock
• Market trends: Economy good = sales good
• Product elasticity: 1.6
• Pricing and price discriminations:
 Consistent with producer/distributor prices
 Price match competitors
 Sell discontinued styles at discount prices
 Corporate accounts
• Spillovers: socks, shoe care products, clothes
• No specific regulations or labor issues

9. Analysis for Future Ahead
• 2 stores are relocating to more highly trafficked areas
 Brunswick store to Topsham in Dec. of 2014
 Plans to move Falmouth store soon
 Temporary increase in costs – will lead to larger demand and supply
• More energy efficient and green methods
 Solar power
 Plastic free
 Average costs will decrease
• Online store
• Economy is picking back up
 People have more real income
 Willing to replace old shoes
 Have more money to buy quality

10. Conclusion
• SHORT-RUN
 Average costs are going to increase, which will decrease profit
 Savings on energy efficient methods will offset some of costs
• LONG-RUN
 Economy is getting better, people will have more real-income to spend
 Savings on energy efficient methods will decrease average costs
 New location of stores will generate more sales
• YEARLY PREDICTION
 2014 – Revenue ↑, Costs ↑, Profit ≈
 2015 – Revenue ↑, Costs ≈, Profit ↑
 2016 - Revenue ↑, Costs ↓, Profit ↑

11. Future Financial Prediction
0
1
2
3
4
5
6
7
8
9
10
11
12
2014 2015 2016
DOLLARS
Millions
YEAR
Profit Cost Revenue

12. Lamey Wellehan
Maine’s Family Shoe Store, 100 Years Strong
Taylor Banister
EC211

13. Bibliography
Murphy, E. (2014, March 13). For Lamey-Wellehan president, the shoe
fits - The Portland Press Herald / Maine Sunday Telegram.
Retrieved November 12, 2014.
Nemitz, B. (2014, July 24). Stingy CEOs Should Walk In His Shoes.
Retrieved November 12, 2014.
Sullivan, A., & Sheffrin, S. (2014).Economics: Principles, applications,
and tools (8th ed.). Boston: Pearson Prentice Hall.
Wellehan, L. (2014, January 1). Our History. Retrieved November 11,
2014, from http://www.lwshoes.com
(2013, June 6). Lamey Wellehan wins business award. Sun-Journal
(Lewiston, ME).
(2014). Lamey-Wellehan turns 100. Sun Journal (Lewiston, ME).