Archive: retail

I see that the BBC’s iPM blog is asking for the human stories behind the current unemployment figures. Well, I am a human face of two recent news stories.

As readers are no doubt sick of reading by now, one of those stories was the loss of around 27,000 jobs at Woolworths. The other is the shortage of graduate-level jobs.

I graduated last summer. I didn’t have a job to walk into straight away because I wanted to take time to think about my future plans. Plus, the economy seemed bad enough at the time, and I thought maybe things would improve a bit later down the line. Now I have more or less decided what sort of work I would like to do, but of course the economy has deteriorated further and the jobs simply aren’t there.

The thing is, I’m not the only one. I can’t think of anyone who was in the same school year as me and has found a graduate-level job. I haven’t kept in touch with many people from university, but those I have heard from are either working in part-time retail jobs or more-or-less volunteering. I am still in touch with a lot of people from school, and no-one I know who was in the same year as me has found a job yet. I’m sure there are loads of people of my age who have found a decent job — I just don’t know any of them.

Many are doing five year courses anyway so are still studying. One or two have opted to go onto further study, while the rest of us are still searching for employment. And I’m not talking about people who got thirds from Shatsborough Poly by any means. I know someone who got a first at St Andrews University and is currently working in a shop.

A few months ago I still had the luxury of working in a shop. Of course, staying on at Woolies was never my long-term goal. It would have been useful as a back-up plan though. Not exactly a plan B, but maybe a plan C. As it stands, I’m still waiting for something to turn up in the realm of plan A, I need to wait and see with plan B, and plan C has totally fallen through already. For now, I’m onto plan D — D for “dole”.

So the news that there is a shortage of graduate places is not exactly news to me. I’ve experienced it myself and I’ve shared that experience with my acquaintances. What is really worrying is that a situation that was bad for the class of 2008 looks set to become even worse in 2009, with no sign of a recovery.

I had long feared that my degree wouldn’t be worth much. When I was at my lowest ebb, I thought that the whole higher education machine was a bit of a scam. When you are at school, you are pretty much told by everyone that going to university is the only option if you don’t want to spend your life being a street cleansing operative. Parents want you to go to university because of their pride. Schools want you to go to university, probably because of some kind of target, or league tables or something. And governments want you to go to university because of their peculiar obsession with having 50% of school leavers in higher education, and probably also to keep unemployment figures down as well.

Quite why I should have wanted to go to university is a bit of a mystery now. It was fairly clear early on that my degree wouldn’t be enough to set me apart, mostly because people began to tell us. There was that old joke about the university graduate who went on to become the best barman in town.

I could see why it was the case. The intellectual range of students is surprisingly large. I studied alongside many students who did not seem very bright (and spent much of their four years at university consuming alcohol), but were obviously quite good at exams. I think I am relatively smart and hard-working, but I don’t happen to perform so well at exams (my essay marks were always higher). Both types of student are likely to get a 2:1, but one of those types is surely the better for the employer. I have few ways of signalling to an employer which type I am.

The fact that employers do not value degrees very highly at all is evident in the fact that most blue chip companies will have job applicants sit their own exams, aptitude tests, diagrammatic reasoning tests and so on and so forth. Simply, there are too many degrees sloshing about in the system and the value of a degree is now so low that it tells you almost nothing about a person’s ability to do a job.

Maybe in the long run it will pay off and I will be pleased I put myself through four years of stress and horrible three hour round-trip commutes. In the meantime, I look at the people around me who have never been to university and think what I could be doing now had I taken their path. If I worked in a shop from the age of 16, I could be in management by now. If I left school at 16 and took up a trade such as plumbing, I would be perfectly comfortable and happy with my life already. I might even be running my own business. As things stand, I just feel a bit lost and I don’t know what my prospects are.

What I find notable is that the few opportunities I have had have arisen as a result of my blogging activities. No-one is interested in me because of my degree. There are plenty of people with one of them, and they’re all looking for jobs too.

The loss of my part time job last week came as a further blow to morale. Even though I was planning to leave my job at around this time anyway, there is nothing like being made redundant from a low-paid shelf-stacking job to make you feel like a spare part to the world. I need to remember that it’s not my fault.

Unemployment has affected me more than I thought it might. While I have never been unemployed in the official sense before, I have had periods of downtime before — summer breaks from university and the like. I thought it would feel like that. But it doesn’t. A whole lot of baggage comes with unemployment.

I have found myself being quite down at times. The scariest part is not the lack of income (for the time being) but the potential that I might end up isolated. You might not get along with all of your colleagues, but they are nonetheless like a second family. It’s a whole set of people who are there, prepared to listen to you and offer advice. Regular contact with people keeps you connected to society. With many of my friends either still studying or gallivanting somewhere else, I am a bit worried about becoming isolated.

Jennifer Tracey asks on the iPM blog if there is less of a stigma attached to being unemployed now that the economy is in such a bad state. I couldn’t help but feel rather self conscious as I took my first trip to the Jobcentre and I almost felt like the spotlight was on me as I walked up the steps to the entrance. I suppose that is quite silly really, because in this part of the world the Jobcentre’s steps are quite well used.

But what other people might think doesn’t bother me as much as what I think does. The prospect that I might be unable to positively contribute to society for the next while vexes me a lot.

By the time I started working for Woolworths, the company was pushing its in-store ordering system big time. In Summer 2006 The Big Red Book was launched to encourage customers to make use of the ordering facility. As sales assistants, we were always encouraged to offer to order any items that weren’t in stock.

Unfortunately, the ordering system was, in my view, a customer satisfaction minefield. The system was slow, clunky and difficult to use. Worse still, the majority of times I checked for an item, it wasn’t in stock and it wasn’t available to order (latterly, it was actually a surprise if an item was in stock). Customers would often raise an eyebrow and say, “I thought you were ordering it because it wasn’t in stock.” No such logic in the Woolworths system. And the flat £4.95 charge for home delivery simply wasn’t worth it for smaller items.

The catalogue also raised customers’ expectations about what they could find in store. A customer would browse the catalogue at home, and expect to be able to find every item they wanted in store. Not so, of course — that’s why they produced a catalogue in the first place. But there were a lot of disappointed customers.

During my stint at Cumbernauld there was a problem soon after the price of pic ‘n’ mix increased. It was still being advertised in the catalogue at the lower price, and the customer demanded to be charged the lower price. I know of at least one other similar incident with another product. The company seemed to forget that producing the catalogue meant they couldn’t really increase any prices.

The Big Red Book experiment was an inept attempt to beat Argos at its own game that was doomed to fail. I have heard that the experiment was ultimately an expensive disaster, and that the ordering system was one cause of the stock availability problems. The catalogue was scrapped in late 2008 (but not before the company had already produced not one but two Christmas 2008 catalogues), but the damage had already been done.

The whole adventure is ironic given that Woolworths was an early player in the catalogue store format with its Shoppers World chain. Woolies gave up on it in the 1980s. Maybe if they persevered they would never have had to worry about Argos.

Smarty-pants analysts like to point out that retailers need things like catalogues and high online sales to survive. But where is Poundland’s online ordering system? I notice also that I can’t buy my food shopping on the Aldi and Lidl websites. Yet these three stores are all in rude health, and are expanding as though the credit crunch never happened. That’s because they focus on providing goods that customers want at low prices — not producing costly catalogues.

It’s highly notable that those currently well-performing stores are all value retailers. Once upon a time, Woolworths would have been seen as a value retailer. Somehow it took its eye off the ball. Woolies was neither a place where you would be sure to find value-for-money bargains, nor a place to buy high-quality goods. Instead, it uncomfortably took a path in the middle — a retailing no man’s land.

In fairness, the launch of the WorthIt! brand was a good stab at offering value-for-money products, and the value was indeed often impressively good. Unfortunately, this sometimes seemed to be at the expense of the main range of products.

For instance, you could always find a better range of stationery in WH Smith (even if it was more expensive there). But alarmingly, the range at Woolworths seemed to get worse since I started working there. Of course, some products had to go to make shelf space for the WorthIt! range. This meant that I could buy sets of WorthIt! notepads that were undoubtedly excellent value for money, but they weren’t quite as good as my preferred kind of mini notepads that disappeared from existence.

Meanwhile, can you believe that latterly we did not sell such basic stationery equipment as a tape dispenser? I only realised this because a customer asked me if we stocked them. I instinctively said yes (of course we do!) only to lose the spring in my step once I had led my customer to the stationery area, realising that I had not seen one in yonks. Boy, did I feel like an idiot.

There were few signs that the product range was going to improve from 2009 onwards. Among the last new products that arrived was a dummy CCTV camera. This must have been designed to be put on sale after the Christmas period, the tell-tale sign being that they came in with half price stickers plastered all over them when they were not yet half price.

Unfortunately, at full price these plastic pieces of crap that literally did nothing (the only feature of this plastic, fake CCTV camera, was a blinking LED) sold for well north of £20. Customers did not touch them with a bargepole, even when the store-wide discount sat at 90% off on the final day.

Most of our remaining stock

There they are on the bottom-right of the above photograph along with a million and one WorthIt! laundry hooks. These were among our unsold products after the shutter went down for the final time on Tuesday. In fairness to the laundry hooks, they probably sold fairly well. The only reason we had loads left was because the distribution centre sent us way too many. By that time, crisis mode was well under way, and clearly the distribution centres’ only aim was to get rid of all the stock, just chucking stuff on cages and waving goodbye.

Another of the final new products to arrive was a set of four crocus vases with crocus bulbs. Not a bad product in and of itself. The problem was that the packaging was shockingly bad. There was next to no protection for the individual vases, meaning that they rattled around inside the box, clattering against each other. This sometimes damaged not only the vases but the bulbs as well (which just sat loose on the top of the vases). If a box was dropped, it was curtains.

Worse still, the boxes came with a huge display window. Not so unusual, except for the fact that it wasn’t so much a window as a massive hole in the box. Unprotected by any kind of cellophane covering, it didn’t take too much jiggling for a vase to “accidentally” fall out of the box. A shoplifter would have had a field day with these, simply being able to inconspicuously reach in, grab a vase and pocket it.

The packaging was so poor that the whole lot ended up being scanned off the books. We took the surviving vases out and sold them separately, sans crocus bulbs, for 30p each. But what a load of money that must have gone down the drain, and all for some thoughtlessly bad packaging!

I have felt very sad about the demise of Woolworths ever since the business began to unravel in front of my eyes around two months ago. I was not sad so much because of my job — I was planning on leaving after the Christmas period anyway. I was just sad to see Woolies go because I was genuinely fond of it as a shop.

I always quite liked the idea that I worked for Woolworths, which had been one of my favourite shops as a child. Kids loved Woolies. I heard a story from another store about a child who enquired to his mother, “Is this Woolies branch closing as well?” When she said they were all closing, the child burst into tears. When I was on the tills during the closing down sale, I heard another child say, “Don’t give us any change!”

My personal affection for Woolies is more surprising because there wasn’t even a branch in Kirkcaldy when I was growing up. There had been a branch at the east end of the High Street, but it had gone by the time I could have any memories of it. It was one of the branches that were sold off in the 1980s.

Today the building houses the Kirkcaldy Indoor Market. But is still very recognisable as a Woolworths, with that classic design of the entranceway that was used for so many Woolworths branches up and down the land.

In the 1990s, there was a small Entertainment-only branch of Woolworths in Kirkcaldy that was more or less in the centre of the High Street. But it closed long before I was old enough to have an interest in buying music, and I have no memory of being in the store at all. That unit has since been an Our Price, a Ponden Mill and latterly a bicycle shop which I think has now closed down.

No, my memories of Woolies came from nearby Glenrothes. I have relatives in Glenrothes, and we would frequently visit, often popping into Woolworths on the way back. When I was a child there was something magical about Woolworths. Maybe it was all the pic ‘n’ mix sweets that I was seldom allowed to buy. I still remember the quaint stickers that used to adorn the pic ‘n’ mix stands — “Please buy before you try” and messages like that.

I always used to wonder why Kirkcaldy didn’t have a Woolies store. It made Glenrothes seem like such a superior town. When I had my job interview at Woolworths, I was asked what I liked most about Woolworths. My answer spoke about how I thought Glenrothes was a better town than Kirkcaldy because it had a Woolies. It must have sounded like I was taking the piss, but it was true.

Woolies finally arrived back in Kirkcaldy in 1998, and it was a large store at that. It filled part of a huge unit that Tesco had recently vacated, having just bought Wm Low whose Kirkcaldy store was judged to be in a better location. From then on, Woolies was always a trusty destination particularly when I had to buy gifts. It is no surprise that Woolworths made most of its profits at Christmas, because in Kirkcaldy at least it was more or less the only place you could find a decent selection of chocolates.

Woolies was also unquestionably useful for other odds and ends. The problem was, you couldn’t always quite tell what odds and ends you would find there. Quite soon after I started working there I clocked that customers were frequently unsure about what Woolies actually sold. I was as well. Even after working there for two and a half years, I would still sometimes be stumped by a question a customer asked about the products we sold, and I would have to go on a wild goose chase to find out if we stocked it.

The store’s role as an events retailer also meant that the range would radically change throughout the year as a matter of routine. Cleverly, shelf space was reserved for seasonal goods. The cycle went from home stuff in January, to gardening in the spring, to back to school in summer, to Hallowe’en stuff in September and October, onto Christmas stuff from then onwards. Tough luck if you wanted to buy a bird feeder during winter though.

Woolworths made a name for itself as a place where you could buy bits and bobs. If you wanted to buy something but weren’t sure where to get it, you could pop into Woolies. This meant that people had an affection for Woolworths — it was that useful shop where you could get your bits and pieces.

But it was also deeply dangerous territory for a store to occupy. Customers would sometimes pin all their hopes on being able to find an obscure household object in Woolies — and would become angry if we didn’t sell it. Then, as widespread access to the internet became a reality, you no longer had to search for your obscure items in Woolies. You could just search Google for them instead.

Meanwhile, all too often people wouldn’t know what Woolworths actually did sell. I primarily worked on the stationery department, but before I worked at Woolies I doubt I would have been able to tell you that it sold stationery. I certainly wouldn’t have bought my stationery from there before I started working there. I shopped at Stationery Box or WH Smith for my ringbingers and refill pads instead.

The sheer variety of goods sold by Woolworths also meant that it had multiple rivals on the High Street, each of whom focussed on a niche that they could specialise in. HMV sold a better range of entertainment products. You could go to Dunelm Mill for your household goods. Around half a dozen phone shops surrounded our back door. There were at least two greetings cards shops a stone’s throw away. The Works had some art and craft stuff. Even for toys you could go to Argos. Apparently Wilkinson destroyed Woolies down south. And of course, Woolworths competed with the major supermarkets on almost everything.

It seemed as though Woolworths needed to bring a better focus to its product range. But at the same time, it was difficult to see which departments could be safely ditched. DIY-type stuff could have been a prime candidate, but at the same time there was nowhere else on the high street (certainly on Kirkcaldy High Street) where you could buy that sort of thing. Entertainment could have gone due to poor sales, but it propped up an important arm of the Woolworths business, Entertainment UK.

I thought it would have been a good idea for Woolworths to position itself as a shop for kids and their parents. That would have brought most Woolworths departments — confectionery, kids clothing, toys, even home goods — under a clearer focus. In a way, I think Woolies had already become that store, but it didn’t have the bravery to properly market itself as such.

It is too easy, though, to blame Woolworths’s demise on the eclecticism of its range. Analysts may have bemoaned the way Woolies stocked Monopoly boards under the same roof as screwdrivers. But that doesn’t explain why one of the healthiest stores on the High Street just now is Poundland, which is like a jumble sale in comparison to Woolies. Plus, the thesis is fundamentally incompatible with the never-ending rise of the supermarket.

My next and final post in the series will look at some of the blunders of Woolworths and what life as a Woolies employee was like in the final few months.

In 1982, the British arm of Woolworths was separated from the American parent when it was bought by retail consortium Paternoster, later to become Kingfisher. It changed the direction of the company forever. According to the Woolworths Virtual Museum, BBC News reported on Woolworths being under British ownership for the first time against a backdrop of the Oxford Street store. Mere weeks later, that very store was closed down.

The Oxford Street store had never been profitable and the new owners sold it to take advantage of the fact that it was a very valuable piece of real estate. This set the scene for a swathe of store closures throughout the decade as Kingfisher sought to capitalise on Woolworths’ portfolio of valuable freehold properties.

When Kingfisher bought Woolworths in 1982, there were 955 stores in the UK. By the end of 1985, there were just 745. Every Woolco out of town store was closed. All 45 Shoppers World (an Argos-style catalogue shop) stores were closed. All of the overseas stores (Woolworths also owned stores in the Republic of Ireland, the West Indies, Cyprus and Zimbabwe) were closed.

What remained of Woolworths was experimented upon. A variety of different shop formats were trialled. One was Kidstore, focusing on goods aimed at children. Another store was bizarrely named Woolworths Weekend (worst marketing ever — why shop there during the week?), while another was The Woolworth Mall.

However, the Kingfisher years undoubtedly shaped Woolies into what we knew it as today. The pic ‘n’ mix offering was turned up to 11. Meanwhile, as well as streamlining the number of shops, Kingfisher streamlined the range of products into more or less the sort of range Woolworths was stocking up to 2008. Believe it or not, the intention was to prevent Woolies from becoming a “jack of all trades” so that it could focus on products that it particularly specialised in.

Meanwhile, experimentation with store formats continued. In the 1990s, Woolworths sought to re-enter towns it had recently left. As a cheap way of doing so, it set up stores in small units that focussed on a particular range. There was a Kids-at-Woolworths which focussed on Ladybird goods, an Entertainment-only shop and a newsagent-style Gifts & Sweets shop.

Subsequently, Kingfisher again appeared to neglect Woolworths. The Woolworths Virtual Museum bitterly notes, “Poor old Woolies, the goose that laid the golden egg for Kingfisher, was left aging in the corner throughout the 1990s – literally an asset to the Group.” This period of neglect is perhaps the root of the problems that eventually spelled the end for Woolworths.

In its day, Woolworth was an innovative store. The “five and dime” concept is one that lives on today in the form of pound shops. Arguably, one of the nails was driven into the company’s coffin by a shop using the Woolworths-invented single-price concept — Poundland (one of the few shops on the High Street that is in good shape at the moment).

Frank W. Woolworth also benefited from his strategy of stocking mass-produced, imported goods which helped drive down prices. Woolworth was also one of the first shops where customers were able to handle and select their goods without having to ask a sales assistant. (The move to self-service, however, was painfully slow, and was not fully completed until decimalisation forced Woolworths to purchase new till equipment anyway. Perhaps that was an early sign that Woolworths had become complacent and set in its ways.)

Woolworths was also, believe it or not, among the first stores to move out of town. In the 1960s it set up the Woolco out of town stores, based on an idea that originated in the USA’s side of the company. However, sceptical local authorities often refused planning permission, fearing that the move to out of town would facilitate the death of the High Street. Woolworths didn’t press on, which is why you didn’t actually see many out of town Woolworths stores.

Having closed all of the branches of Woolco down when it bought Woolworths, Kingfisher set about creating a new out of town store. Seeking to unite all of its British brands — Woolworths, B&Q, Comet and Superdrug — under one umbrella, it created Big W. It didn’t last long. The Woolworths Virtual Museum stingingly blasted:

The Big W format was the most successful prototype store ever launched by Kingfisher. But that has to be taken against a backdrop that their most successful brands – Woolworths, Comet, Superdrug, B&Q, Castorama and Darty were all created by someone else before being absorbed into Kingfisher. Big W was a first – born out of a need to justify Kingfisher’s identity.

Having failed to justify its identity, in 1999 Kingfisher pinned its hopes on a merger with Asda. Everything looked promising until Wal*mart came in and spoiled the party. In 2000, it was decided that the “general merchandise” sector of Kingfisher (comprised of Woolworths, Superdrug and MVC) would be demerged. Today, Kingfisher specialises in DIY rather than being made up of the eclectic jumble of retailers it consisted of in the 1990s.

Woolworths Group plc was formed in September 2001 — but not before Kingfisher had sold all of the Woolworths buildings, meaning that the new business had to lease all of them back from the new landlords. The saddest thing of all is that Woolworths still had huge takings — but it had ginormous rent bills.

The final words on the Woolworths Virtual Museum are rather incongruous.

With a new team at the top, and big ideas for the future, the Group is embarking on the next stage of their history. We look forward to reporting their success here in the Virtual Museum.

The final Woolworths stores in America closed in 1997. Remnants of the company live on though. The UK arm’s joint venture with BBC Worldwide, the DVD publishing house 2 entertain, is still in operation. Meanwhile, the American company still exists as Foot Locker, having decided to focus solely on sportswear in the 1990s.

Believe it or not, the last place in the world you’ll be able to shop in a bona fide Woolworth store is Germany. The company only separated from its American parent in 1997 when it became Foot Locker. But German Woolies appears to still be going strong.

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.