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Archive: diy

Woolworths: Final thoughts and wrapping up

17 January 2009 00:28

Categories: Blogging, Current affairs, General, Media, Nostalgia, Personal, Work

(Almost) 100 years of Woolworths

A series of posts

  1. Woolworths: The curiously British US-based company
  2. Woolworths as it was known and loved, and neglected
  3. Woolworths: Childhood memories and adult gripes
  4. It wasn’t just the credit crunch
  5. The blunder of Woolworths
  6. Identity crisis
  7. The beginning of the end
  8. The nasty side of human nature
  9. Woolworths: Final thoughts and wrapping up
  10. Woolworths rises from the ashes

First of all, apologies to anyone who became sick of Woolworths when I published eight posts in a row about it. As you will have seen, “normal” service is on its way to resumption. Anyway, it was good to get it all off my chest, and is at least cheaper than seeing a therapist.

When I started writing this series, I thought I was going to end up with four posts. I ended up writing nine posts, and almost 10,000 words. I have a few final thoughts before I shut up about the subject for good.

A lot of people who have spoken to me about Woolworths have blamed the credit crunch and / or the government for the demise of Woolworths. As my posts have outlined, I think that is a gross simplification of the matter. If you look at the archives of newspapers you can see that people have seen this coming for a while, credit crunch or no credit crunch.

No doubt the staggering deterioration in the economy from October onwards accelerated things a lot. But there were fundamental problems with Woolworths, partly because it was burdened by almost 100 years of history which made it difficult to evolve.

A lot of people said they felt sorry for the way “they” were treating us. I couldn’t find it in myself to be angry (although that was admittedly made easier by the fact that I was planning on leaving anyway). No-one planned on the business failing. As for the administrators, it is their job to recover as much money from the situation as possible. That can mean being pretty ruthless and it cannot be an easy situation to manage.

A lot of customers asked me questions as though I had some kind of magical insider knowledge. When I said I didn’t know what was happening some people would say they thought I was being treated badly. I usually said, “I don’t think they even know what’s happening themselves.” I don’t know if they did know, but I imagine events were pretty fast-moving.

The reality was that I would have had a much better idea of what was happening if I stayed at home and watched the news. Lots of customers would come in and talk about what they had heard on the news, probably not even realising that we were totally unaware of whatever development had come about. It was unfortunate that things happened that way, but I doubt it can be helped.

The more I researched the history of Woolworths for this series of posts, the more I came to the conclusion that it was actually a fundamentally good business — or at least had the potential to be a good business. But throughout its history it has been maltreated in various ways and it ended up battered and bruised, limping on until finally keeling over this year.

For instance, the British arm of Woolworths was always more successful than its American parent. But until 1982 it sent most of its profits back to America. The Kingfisher years were, if anything, even worse.

Kingfisher failed to find an identity for itself and Woolworths was demerged in 2001. Under Kingfisher the stores had begun to crumble. Worst of all, just before the demerger Kingfisher sold all of Woolworths’s property, meaning that the new company had to lease it all back from landlords. Woolworths had crippling rent bills for the rest of its life. Woolworths still had huge takings, but it was brought down by massive overheads.

Arguably, the main beneficiary of the situation was B&Q. Kingfisher, rich having sold all of the Woolies property, continues to own B&Q to this day. But it was Woolworths which originally had the foresight to buy B&Q.

Home improvement and DIY was a big thing for Woolworths by the 1980s, as you can see in this advert from 1980. The products featured are almost entirely DIY-oriented.

Certain that DIY was a growth area, then-chairman of Woolworths Geoffrey Rogers bought the then-fledgling B&Q. The DIY offering in Woolworths was watered down to make way for B&Q. This might be one major reason why so many people cite Wilkinson as the store that replaced Woolworths.

Although Woolies appeared to have lost its way in the later years, there’s no doubt that most people had a real affection for the store. I saw lots of great blog posts during the final few weeks:

And some nice nostalgic offerings from more major news outlets:

Now, sadly, the shutter is down for good.

It's now staying shut
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Woolworths: The curiously British US-based company

6 January 2009 18:55

Categories: Fife, General, Nostalgia, Scotland, Work

(Almost) 100 years of Woolworths

A series of posts

  1. Woolworths: The curiously British US-based company
  2. Woolworths as it was known and loved, and neglected
  3. Woolworths: Childhood memories and adult gripes
  4. It wasn’t just the credit crunch
  5. The blunder of Woolworths
  6. Identity crisis
  7. The beginning of the end
  8. The nasty side of human nature
  9. Woolworths: Final thoughts and wrapping up
  10. Woolworths rises from the ashes

Today, the shutter came down for the final time at Woolworths Kirkcaldy, Store 1201. It was among the final group of branches to close. It is the end of an era. This institution had been a fixture in Britain’s High Streets for almost 100 years.

The history of the original company set up by Frank W. Woolworth goes back even further though. Even though some of the online campaigns to save Woolies laboured under the impression that it was a British store, Mr Woolworth was in fact from the USA and he opened several stores in the USA and Canada before opening a single British branch. And right up until the 1980s, Woolies in the UK sent most of its (substantial) profits back to the USA as well!

According to the Woolworths Virtual Museum website (which was taken down when the company went into administration, but can still be viewed on the internet archive), the origins of the store can be traced right back to 1873. Frank Woolworth worked for William Moore at the Augsbury and Moore Dry Goods Store in Watertown, New York. Mr. Moore came up with the innovation to sell surplus goods at a fixed price of 5 cents.

Mr. Woolworth took this idea further, deciding to set up an entire shop full of goods that cost 5 cents. Having persuaded Mr. Moore to back the store, the first Woolworths shop opened in Utica, New York in 1978. But after an initial success, the store was eventually a flop. Undeterred, Mr. Woolworth opened a second store in Pennsylvania, 60 miles away. It was a runaway success.

From then on, there was no stopping Woolworth. By 1910, F. W. Woolworth paid for the construction of the Woolworth Building — which was the world’s tallest building until 1930 — with $15 million in cash. As well as expanding into the UK, Woolworths also opened branches in Canada, Germany, Ireland and Cuba! (Retailers named Woolworths in Australia, New Zealand, South Africa and Mexico have nothing to do with F. W. Woolworth’s company.)

It was only in 1909, over 30 years after the opening of the first Woolworth store in the USA, that the brand arrived in Britain. Anglophile Frank W. Woolworth had written several years earlier during a visit to the UK, “I believe that a good penny and sixpence store, run by a live Yankee, would be a sensation here.” The first British F. W. Woolworth & Co. Ltd 3d and 6d store was opened on 5 November 1909 on Church Street in Liverpool. It was a roaring success.

Before long, Woolworths had become bigger in the UK than it was in the USA. It was quickly given the nickname Woolies, a sign of the genuine affection the British public had for the store. By the 1920s, a new Woolworths store was being opened every 17 days. Local officials across the country were desperate for a Woolies to open in their town, and if it did so it was seen as a seal of approval for the area. The British image of the chain was further underlined when the company raised enough money to buy two Spitfires during World War II.

Woolworths dropped the fixed price concept during World War II. The 6d upper limit had been stretched to breaking point during the 1930s as Woolies started selling socks and shoes individually for sixpence. And if you wanted a saucepan, you had to buy the lid separately too! As rationing came in, the 6d upper limit had to go.

After the war, Woolies grew even more quickly than before. Alongside the programme re-opening stores affected by the events of World War II, 330 new stores were opened within a six year period in the 1950s. At one point, stores were opening at the rate of two per week. The 1,000th Woolworths store in Britain was opened in Portslade in 1956.

Decline set in during the 1970s. Analysts began to criticise the “moribund” store. Throughout that decade, around 150 stores were closed, bringing the number of stores back down from a peak of 1,100.

Woolworths had lots of freehold properties and sold some in order to buy DIY chains B&Q and Dodge City. Analysts were sceptical, but Woolworths Chairman Geoffrey Rogers was right in his hunch that DIY would be a growth area in the coming decade. Mr. Rogers had envisaged 100 B&Q stores opening within ten years. The target was easily surpassed.

Woolworths had much to celebrate after its first seventy years. But that was all plain sailing compared to what would face the company from the 1980s onwards. My next post will look at the history of Woolworths from the Kingfisher purchase onwards.

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