| Hometown Commitment Doing
business in isolated Sitka brings local retailers special challenges in shipping and
stocking, but Hames Corporation, the area's largest grocer, is committed to doing business
here and has made Sitka the base from which it plans to operate.
Hames Corp. operates Sea Mart Quality Foods(36,000 square feet) and Market Center
(12,000 square feet), two of Sitka's three grocery stores, as well as The Plaza, an
86,000-square foot shopping center in Ketchikan.
Until November of '93, it also operated two Ketchikan grocery stores, but these were
sold to Carr Gottstein Foods Co. at that time. Meanwhile, the four company-owned retail
outlets in the mall were split off into a separate company, Clearwater Bay Corp. Port West
Inc., the name formerly used for many of the operations, was merged into the parent
company, Hames Corp. in 1994.
Centering the family business in Sitka, despite the town's smaller size and closure of
the Alaska Pulp Corp. mill in '93, is a happy and solid decision, insists Roger Hames, the
corporation's president.
"When we were talking (with Carr's), they expresses an interest in the Sitka
stores, too," he says."But we had to look at our base and our history. Whether
there's a mill here or whether the town shrinks or grows, this is where we want to
be."
He ponders a moment. "I don't think I could live here with someone else running
the store."
Alaska Roots
Though from different generations, and with distinct philosophies both Roger Hames and
his father Lloyd, the company's semiretired founder, share a belief in service. "You
are isolated in Sitka and Ketchikan," Lloyd says, explaining the tenet that has
guided his decision for more than 40 years. So if you are going to spend your money, then
do it first class."
The elder Hames says bankers and other planners for each of his developments urged him
to reduce both in size and quality the vision of the shopping places he wanted to create.
He had to fight to prove that customers would respond better to "nicer digs."
"We were not supposed to have dropped ceilings, not supposed to have tile on the
floor," says Lloyd of the "warehouse style" originally envisioned for
Sitka's Sea Mart by financiers. "But I believe 100 percent that if people are
spending their money, they deserve the best they can get."
Son Roger says that because of the close community that is Sitka, most shoppers know by
name not only the checkers but most of the other customers as well - his company relies
less on competitive advertising and more on making its stores the kind of place shoppers
want to visit.
The key to all of this is the company's "associates," as Roger calls his
employees. Sea Mart associates are encouraged to greet their customers by name, carry
their groceries, and ask if there is any way the store could serve them better.
A recent study showed Sea Mart customers visit the store about three times a week.
"We have a captive audience," says Roger. "But that shouldn't be a
hindrance. What an opportunity. Between the market trends of the grocery industry, saying
you ought to be into this or to do that and the customer feedback, we pretty much try to
stay on top of things. I feel our relationships with our customers are better because we
see the same ones so often."
Finding Fresh Ideas
Lloyd Hames was the first grocer to ship fresh milk into Alaska from Washington dairies
in the 1950's. That milk came in insulated vans with cartons, frozen on the outside,
keeping the liquid cartons on the inside fresh. He was the first to ship in fresh pork and
chicken.
"We pioneered this," he says. "At that time, even Anchorage did not have
that service." Lloyd remembers salesmen from other companies visiting his store and
leaving with their suitcases bulging with aged, fresh steaks to take home.
"I was always looking for a better way," he says. "It follows through
from when I was a kid. To see how it could be done better."
That philosophy shows in Lloyd's efforts, while serving as a state Commissioner of
Corrections from 1990 to 1992, to streamline food purchases for the various prison
facilities. It also showed in his pioneering use of container vans for groceries on the
Alaska Marine Highway System in the 1960's, reliable and affordable until the ferry
service moved its southern terminus from Seattle to Bellingham, Wash. Now Alaska Marine
Lines, which planned its service in consultation with Hames, provides twice-weekly barge
service that fills most of the company's transportation needs.
"It has been a lot easier the past several years," sighs Roger, with obvious
relief.
The big challenge now is keeping pace with changes wrought in the Sitka economy, not
only by the mill closure, but also with the explosion of the discount retail scene in
Juneau.
"We've reset the store to take in the needs of the community," says Roger.
"People are looking for more values, as evidenced by the ferries going to Juneau for
Costco, Fred Meyer and Kmart. If we want to be retailers who are responsible, we have to
get out of the cube and look at it through the consumers' eyes very, very closely."
Sea Mart has begun featuring lower price-per-unit "club packs" and has
discounted a seasonal "salient list" for shoppers on a lower budget. The list
may include plain wrapped bread, a moderate quality hot-dog, orange juice, head lettuce
and tomatoes for example.
The twice-weekly barge has largely replaced air shipments, but Hames still relies on
planes for farm fresh peaches, nectarines and other seasonal fruits. Planes also help fill
holes in stock in a hurry.
The store has an expanded bulk-food section, and customers occasionally clean the bins
of candies and cereals. Rather than back down from its commitment to supply what the
customer wants, Hames Corp. will often times fly in the relatively low-priced items.
Community Commitment
Roger says the full effect of the mill closure is still being measured and still has an
impact on the town. He will specify only that his business has been hit hard.
"I don't think Sitka's economy has hit bottom yet," he says. "Many
people in Sitka seem to act like nothing is wrong, but I know many businesses have been
hit broadside."
Roger says his company plans to continue the social events, like the egg
"fishing" contest at Easter, inexpensive grilled hot dogs with chili and a
popular bike rodeo, to help ease the "doom and gloom."
His attitude toward the town evokes that of the English landed families of the last
century, who felt their concern for their work force and customer base went beyond
strictly business. Several years ago, the Hames Corp. commissioned a statue of Alexander
Baranof for the center of town to commemorate civic roots and the roots of business here.
Hames Corp. likes to have events for their associates and their extended families outside
of the day to day business. "Fun stuff," Roger says. "We don't want to
forget to make time for having fun!"
The Hameses want their associates to share in the store's success; likewise, managers
are not afraid to share in the grunt chores.
On the day he is interviewed, Lloyd shows up in his painting clothes, having overseen
the final coat on the front of the store. When concrete work was done on some Hames' real
estate in town, Lloyd stayed outside with the workers looking for his "better
way." He regularly awakens at 4 A.M. to spend an hour setting priorities for the day
before catching another hours sleep. "My wife says I'll probably be giving directions
on notes passing out of my casket on the way to the funeral," he admits. "I've
had people saying 'what are you doing out here painting? You're retired.' But what would I
be doing if I didn't?"
Roger says he admires his father and is often times amazed at the visionary decisions
elder Hames has made over the years, some of which are just now bearing fruit. In 1992,
the family attended a seminar in California, sponsored by Quaker Oats, on how to
successfully pass a family business on to the third generation.
Roger says he won't force his children into the business against their will, but wants
to expose them to the work ethic he learned from Lloyd. He says he's not sure precisely
what the leaner Hames Corp. will venture into in the future, but he is pretty sure of the
direction.
"Our bread and butter is groceries and that's no pun intended!" Roger says.
"That's what I grew up knowing, and that's what I want to keep as our foundation. I
intend to make the two stores in Sitka, the best stores anywhere."
Update: September 1998
A significant store remodel at Sea Mart Quality Foods occurred in 1995 with a grand
"reopening" in December of the same year. Highlights of the remodel include, the
store being expanded into the parking lot by 10 feet, installation of a new 16 foot
revolving door , a "Kids World" play area, expanded video department, new floral
department, new espresso stand and an all new food court. In addition, the decor was
updated along with a new paint job throughout.
In June of 1997, Roger Hames bought out the interest that his brother and sister held
in Hames Corporation. The owners of the company now include Roger and his wife, Mary, and
Lloyd and his wife, Barbara..
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