F. W. Woolworth Company Explained

F. W. Woolworth Company
Fate:Department stores closed. Name changed in 1997 to Venator Group, and in 2001 to Foot Locker
Trade Name:Woolworth's or Woolworth & Co
Traded As: (1912–1997)
Type:Public
Foundation:, in Utica, New York, U.S.
Defunct:
(said division only)
Founder:Frank Winfield Woolworth
Successor:Foot Locker (1974–present)
Location:Woolworth Building, Manhattan, New York City, U.S.
Industry:Retail
Key People:F.W. Woolworth (CEO & president)
Charles Woolworth (chairman)
Products:Clothing, footwear, bedding, furniture, jewelry, beauty products, consumer electronics and housewares
Parent:Woolworth Corporation, LLC.
Subsid:Woolworths Group
F. W. Woolworth Ireland
Woolworth Canada
Woolworth GmbH
Woolworth Mexicana
Kinney Shoe Company
Woolco
Woolworth Athletic Group
Richman Brothers

The F. W. Woolworth Company (often referred to as Woolworth's or simply Woolworth) was a retail company and one of the pioneers of the five-and-dime store. It was among the most successful American and international five-and-dime businesses, setting trends and creating the modern retail model that stores follow worldwide today.

The first Woolworth store was opened by Frank Winfield Woolworth on February 22, 1879, as "Woolworth's Great Five Cent Store" in Utica, New York. Though it initially appeared to be successful, the store soon failed.[1] When Woolworth searched for a new location, a friend suggested Lancaster, Pennsylvania. Using the sign from the Utica store, Woolworth opened his first successful "Woolworth's Great Five Cent Store" on June 21, 1879, in Lancaster. He brought his brother, Charles Sumner Woolworth, into the business.

The two Woolworth brothers pioneered and developed merchandising, direct purchasing, sales, and customer service practices commonly used today. Despite its growing to be one of the largest retail chains in the world through most of the 20th century, increased competition led to its decline beginning in the 1980s, while its sporting goods division grew.

The chain went out of business in July 1997, when the company decided to focus primarily on sporting goods and renamed itself Venator Group. By 2001, the company focused exclusively on the sporting goods market, changing its name to the current Foot Locker, Inc., changing its ticker symbol from its familiar Z in 2003 to its present ticker .

Retail chains using the Woolworth name survived in Austria, Germany, Mexico and the United Kingdom as of early 2009. The similarly named Woolworths supermarkets in Australia and New Zealand are operated by Australia's largest retail company, Woolworths Group, a separate company with no historical links to the F. W. Woolworth Company or Foot Locker, Inc.; it did, however, take the name from the original company, as it had not been registered or trademarked in Australia at the time.[2] Similarly, in South Africa, Woolworths Holdings Limited operates a Marks & Spencer-like store and uses the Woolworth name, but has never had any connection with the American company. The property development company Woolworth Group in Cyprus began life as an offshoot of the British Woolworth's company, originally operating Woolworth's department stores in Cyprus. In 2003, these stores were rebranded Debenhams, but the commercial property arm of the business retained the Woolworth's name.

History

Origin

The F.W. Woolworth Co. had the first five-and-dime stores, which sold discounted general merchandise and fixed price, usually five or ten cents, undercutting the prices of other local merchants. Woolworth, as the stores popularly became known, was one of the first American retailers to put merchandise out for the shopping public to handle and select without the assistance of a sales clerk. Earlier retailers had kept all merchandise behind a counter and customers presented the clerk with a list of items they wished to buy.[3]

After working in Augsbury and Moore dry goods store in Watertown, New York, Frank Winfield Woolworth obtained credit from his former boss, William Moore, along with some savings, to buy merchandise and open the "Woolworth's Great Five Cent Store" in Utica, New York, on February 22, 1879.[1] The store failed and closed in May 1879, after Woolworth earned enough money to pay back William Moore. Woolworth soon made a second attempt, and opened his "Woolworth's Great Five Cent Store", using the same sign, on June 21, 1879, in Lancaster, Pennsylvania.

Lancaster proved a success, and Woolworth opened a second store in Harrisburg, Pennsylvania in 1879, with his brother Charles Sumner Woolworth as manager. The Harrisburg store closed after a falling-out with the landlord; their next store, in York, Pennsylvania, likewise closed after only three months of operation. Finally, the "5¢ Woolworth Bro's Store" opened in Scranton, Pennsylvania on November 6, 1880, with Charles as manager. At this location, the "5¢ & 10¢" merchandising model was fully developed, and the store proved a success. Charles bought out Frank's share of the Scranton store in two installments, in January 1881 and 1882, making him the company's first franchisee.[4] [5] [6] [7]

In 1884, Charles partnered with his longtime friend, wholesaler Fred Morgan Kirby, on a location in Wilkes-Barre, Pennsylvania, which they called "Woolworth and Kirby". This location, too, was successful, and the brothers continued persuading family members and other associates to join them in forming a "friendly rival syndicate" of five-and-ten-cent stores. Each of the syndicate chain's stores looked similar inside and out, but operated under its founder's name. Frank Woolworth provided much of the merchandise, encouraging the rivals to club together to maximize their inventory and purchasing power.[8]

Rise and expansion

By 1904, the syndicate had six chains of affiliated stores operating in the United States and Canada, which began incorporating separately during the next few years. In 1912, however, all 596 stores merged into one corporate entity under the name "F. W. Woolworth Company". Frank Woolworth served as president; Charles Woolworth, Fred Kirby, Seymour H. Knox I, Earle Charlton, and William Moore each became a director and vice president.

In 1900, Frank Woolworth bought up adjoining properties in a low-rent area of Lancaster. On the newly acquired land, he had a building erected with five floors of offices above a large store, as well as a garden and open-air theater, which soon became the city's social center.

In 1910, Frank Woolworth commissioned the design and construction of the Woolworth Building in New York City. A pioneering early skyscraper, it was designed by American architect Cass Gilbert, a graduate of the MIT architecture school.[9] The building was paid for entirely in cash. It was completed in 1913 and was the tallest building in the world until 1930. It also served as the company's headquarters until the F.W. Woolworth Company's successor, the Venator Group (now Foot Locker), sold it in 1998.

After Frank Woolworth's 1919 death, his brother Charles took on the role of chairman of the board, and the company's treasurer Hubert T. Parson took over the presidency.

In 1925 the company reported $253 million in sales, in 1926 $239 million.[10]

For many years the company did a strictly "five-and-ten cent" business, but in the spring of 1932 it added a 20-cent line of merchandise. On November 13, 1935, the company's directors decided to discontinue selling-price limits altogether.[11]

The stores eventually incorporated lunch counters after the success of the counters in the first store in the UK in Liverpool. These counters served as general gathering places, a precursor to the modern shopping mall food court. A Woolworth's lunch counter in Greensboro, North Carolina became the setting for the 1960 Greensboro sit-ins, protesting the company's racial segregation policies in the South, a key event of the Civil Rights Movement.

The Woolworth's concept was widely imitated, and five-and-ten-cent stores (also known as five-and-dime stores or dimestores) became a 20th-century fixture in American downtowns. They would serve as anchors for suburban shopping plazas and shopping malls in the 1950s, 1960s, and 1970s. Criticisms that five-and-dime stores drove local merchants out of business would repeat themselves in the early 21st century, when big-box discount stores became popular.

Diversification

In the 1960s, the five-and-dime concept evolved into the larger discount department store format. In 1962, Woolworth's founded a chain of large, single-floor discount stores called Woolco. In that same year, Woolworth's competitors opened similar retail chains that sold merchandise at a discount: the S.S. Kresge Company opened Kmart, Dayton's opened Target, and Sam Walton opened his first Wal-Mart store.

The following year, in 1963, Woolworth expanded into the shoe store business with the purchase of Kinney Shoe Corporation, which eventually created the store that Woolworth would become — Foot Locker.

By Woolworth's 100th anniversary in 1979, it had become the largest department store chain in the world, according to the Guinness Book of World Records.

During the 1980s, the company began expansion into many different specialty store formats, including Afterthoughts (which sold jewelry and other accessories for women),[12] Northern Reflections (which sold cold-weather outerwear),[12] Rx Place (later sold to Phar-Mor), and Champs Sports.

By 1989, the company was pursuing an aggressive strategy of multiple specialty store formats targeted at enclosed shopping malls. The idea was that if a particular concept failed at a given mall, the company could quickly replace it with a different concept. The company aimed for ten stores in each of the country's major shopping malls, but this never came to pass, as Woolworth never developed that many successful specialty store formats.

Also attempted was a revision of the classic Woolworth store model into Woolworth Express, a small, mall-oriented variant which was dubbed "a specialty variety store'', stocked with everyday convenience items such as health and beauty aids, greeting cards, snack foods, cleaning supplies and school supplies (somewhat like the non-pharmacy, mall-based locations of CVS/pharmacy and other drug store chains).[13]

Decline

The growth and expansion of the company contributed to its downfall. The Woolworth company moved away from its five-and-dime roots and placed less emphasis on its department store chain as it focused on its specialty stores. Still, the company was unable to compete with other chains that had eroded its market share.

While it was a success in Canada, the Woolco chain closed in the United States in 1983. Europe's largest F. W. Woolworth store, in Manchester, England (one of two in the city centre), suffered a fire in May 1979. Despite the store being rebuilt even larger and up to the latest fire codes, the negative stories in the press and loss of lives in the fire sealed its fate; it ultimately closed in 1986. During the rebuilding and partly as a result of the bad press, the British operation was separated from the parent company as Woolworths plc. This proved fortuitous, as the brand subsequently lasted a full twelve years longer in the United Kingdom than it did in the United States.

On October 15, 1993, Woolworth's embarked on a restructuring plan that included closing half of its 800-plus general merchandise stores in the United States and converting its Canadian stores to a closeout division named The Bargain! Shop. Woolco and Woolworth survived in Canada until 1994, when the company sold the majority of the Woolco stores to Wal-Mart. The Woolco stores that Wal-Mart did not purchase were either converted to The Bargain! Shop, sold to Zellers or closed permanently. Approximately 100 Woolworth stores in Canada were rebranded as The Bargain! Shop, and the remainder closed.

Transition

Amid the decline of the signature stores, Woolworth began focusing on the sale of athletic goods. On January 30, 1997, the company acquired the mail order catalog athletic retailer Eastbay.

On March 17, 1997, Wal-Mart replaced Woolworth's as a component of the Dow Jones Industrial Average.[14] Analysts at the time cited the lower prices of the large discount stores and the expansion of supermarket grocery stores – which had begun to stock merchandise also sold by five-and-dime stores – as contributors to Woolworth's decline in the late 20th century.

Venator

On July 17, 1997, Woolworth's announced that it would be closing its remaining department stores in the United States.[15] The company also changed its corporate name to Venator. In 1999, Venator moved from the Woolworth Building in New York City to offices on 34th Street.

Foot Locker

On October 20, 2001, the company changed names again; taking the name of its top retail performer and became Foot Locker, Inc., which Woolworth started in 1974 under Kinney Shoes. Foot Locker, Inc., is the legal continuation of the original Woolworth; it retains Woolworth's pre-1997 stock price history.

As part of celebrating F. W. Woolworth's centennial on the New York Stock Exchange on June 26, 2012, a news release featured 1912 Woolworth's store and a 2012 Foot Locker store.[16]

Influence on popular culture

Greensboro, and other, sit-ins

See main article: Greensboro sit-ins.

On February 1, 1960, four black students sat down at a segregated lunch counter in a Greensboro, North Carolina, Woolworth's store. They were refused service, touching off six months of sit-ins and economic boycotts that became a landmark event in the civil rights movement. In 1993, an eight-foot section of the lunch counter was moved to the Smithsonian Institution and the store site now contains a civil rights museum,which had its grand opening on Monday, February 1, 2010, the 50th anniversary of the beginning of the sit-ins.[30]

Imitation sit-ins also occurred in other cities where there were segregated lunch counters at Woolworth's. In Roanoke, Virginia on August 27, 1960, two women and a boy "...sat at the lunch counter and ordered a slice of pie, a soda and a sundae, all under the watchful eyes of the biracial committee which had organized the event." The names of the three black customers were not reported at the time, and are now unknown. While the incident was uneventful, other sit-ins were completed, also without incident, at 17 other segregated lunch counters in Roanoke.[31]

There were at least 3 sit-ins in Florida Woolworth's locations; two in March 1960, in Tampa[32] and Sarasota,[33] and in July 1963 in St. Augustine, Florida.[34]

Presidents

In later years the chairman rather than the president was frequently the chief executive officer. Gibbons (1919–1982) succeeded Burcham (1913–1987) as chairman-CEO in 1978 and died in office, succeeded by vice chairman John W. Lynn (1921–2013) who was succeeded in 1986 by president (since 1983, replacing Richard L. Anderson (d. 2015)) Harold Sells. Farah joined the company as chairman and CEO in December 1994 and Hennig was replaced by Dale W. Hilpert as president in May 1995. That changed after the company's transition into a sporting goods company.

Non-American retail users of the Woolworth name

See also: Woolworth (disambiguation).

Former F.W. Woolworth subsidiaries

Currently in business

Defunct

Others

See also

Further reading

Notes and References

  1. Book: Winkler, John K.. Five and Ten: The Fabulous Life of F. W. Woolworth. Pickle Partners. July 31, 2017. 978-1787207905.
  2. Web site: Our Story – 1924 September. Woolworths Limited. June 10, 2013. May 18, 2013. https://web.archive.org/web/20130518220437/http://woolworths.com.au/wps/wcm/connect/website/woolworths/about+us/our-story/september+1924. dead.
  3. News: Woolworths: the rise and fall of the department store empire . James . Robinson . . London . November 19, 2008.
  4. Web site: Welcome to the Woolworths Museum . The Woolworths Museum.
  5. VII: Frank Winfield Woolworth . American Families Historic Lineages. 3. New-York Historical Society.
  6. Web site: Five and Dime Timeline, 1879–2003. Jason. Togyer. G.C. Murphy Memories. January 1, 2021.
  7. News: Helen . Pike . Woolworth in New Jersey: A Love-Hate Relationship . . December 5, 1999 . June 27, 2008 . subscription.
  8. News: Remembering Woolworth's: A Nostalgic History of the World's Most Famous Five-and-Dime. St. Martin's Press. New York. 1999. October 23, 2011. Karen. Plunkett-Powell. 978-0312277048.
  9. Web site: Study for Woolworth Building, New York . . December 10, 1910 . July 25, 2013.
  10. January 17, 1927 . Business: Business Notes, Jan. 17, 1927 . en-US . Time . January 13, 2023 . 0040-781X.
  11. 45–58. Club Members Remember Shopping at Woolworth's. Tredyffrin Easttown Historical Society. History Quarterly. April 1994. 32. 2. January 1, 2021.
  12. News: Barmash . Isadore . Chain by Chain, Woolworth Reinvents Itself . December 15, 2018 . . December 13, 1992 . 5, Sec. 3 . subscription.
  13. News: Woolworth Will Add 800 Stores. Key. Janet. Chicago Tribune. September 30, 2018. en-US.
  14. Web site: Dow Jones Industrial Average Historical Components . September 23, 2013 . October 24, 2015 . S&P Dow Jones Indices LLC . February 2, 2013 . https://web.archive.org/web/20130202200847/http://www.djindexes.com/mdsidx/downloads/brochure_info/Dow_Jones_Industrial_Average_Historical_Components.pdf . dead .
  15. News: Swanson . Tia . Store's Finale ends Tradition . 21 July 2024 . . 18 July 1997.
  16. Foot Locker to Celebrate 100-year anniversary on the New York Stock Exchange. June 26, 2012. Foot Locker Inc..
  17. Old School Mall Stores That Need to Make a Comeback. July 9, 2013. October 24, 2015. Complex. Block. Justin.
  18. Web site: British Christmas Traditions — Christmas Trees. October 24, 2015. Project Britain. Barrow. Mandy.
  19. Web site: Foster Grant Collection. October 24, 2015. Syracuse University Library.
  20. Web site: Riley . Joshua . Historic Woolworth . June 23, 2022 . Woolworth Theatre . en-US.
  21. Book: Moody, Anne. Coming of Age in Mississippi. 286. New York. Bantam Dell. September 7, 2011. subscription. 978-0307803580.
  22. Book: Abel, Elizabeth . Elizabeth Abel . Signs of the Times: The Visual Politics of Jim Crow . Berkeley, California . University of California Press . 256 . May 6, 2010. 978-0520261839.
  23. News: . Real Violence: 50 Years Ago at Woolworth . Burns . Trip . May 23, 2013 .
  24. When Nijinsky met Woolworths . February 28, 2013 . 93 . Leither Magazine . 8 . January 1, 2021 . February 28, 2023 . https://web.archive.org/web/20230228075511/https://issuu.com/theleither/docs/web-93 . dead .
  25. Web site: Ryan . Firekeeper . O Brother Where Art Thou - Woolsworth . https://ghostarchive.org/varchive/youtube/20211117/JaW0M6V85j8. November 17, 2021 . live. . September 24, 2011 . June 25, 2017.
  26. Web site: O Brother, Where Art Thou? (2000) - Quotes . . June 25, 2017 . June 25, 2017.
  27. Web site: Facebook . Woolworth's Diner.
  28. Web site: 2022-01-25 . Woolworths Diner will be closing temporarily . 2024-04-12 . KGET 17 . en-US.
  29. Web site: smayer@bakersfield.com . STEVEN MAYER . 2024-01-20 . Transforming a historic space: Owners of Woolworth's building win $250,000 city grant to help . 2024-04-12 . The Bakersfield Californian . en.
  30. Web site: Civil Rights Greensboro . University of North Carolina at Greensboro Library . November 17, 2011 . March 26, 2012 . https://web.archive.org/web/20120326131650/http://library.uncg.edu/dp/crg/itemlist1.aspx?f=0&s=20&lastkey=0 . dead .
  31. News: Editorial: Some historical markers we need . Roanoke Times. February 17, 2017. 8. January 1, 2021.
  32. Pollitt . Daniel H. . Dime Store Demonstrations: Events and Legal Problems of First Sixty Days . Duke Law Journal . Summer 1960 . 1960 . 3 . 325 . 10.2307/1371082 . 1371082 . March 13, 2023.
  33. Book: LaHurd . Jeff . Gulf Coast chronicles : remembering Sarasota's past . 2005 . History Press . Charleston, SC . 9781596290297 . 93.
  34. Web site: Phillips . Gayle . Historic Woolworth's Counter now on display . March 13, 2023.
  35. News: To succeed C.C. Griswald. The Woolworth Company Announces the Selection of H.T. Parsons. . Announcement was made yesterday by the F.W. Woolworth Company that Hubert T. Parsons, present Secretary and Treasurer of the company, was to be appointed ... . The New York Times. January 29, 1916 . June 27, 2008 .
  36. News: H.T. Parson to Head Woolworth Stores. Acting President Since Death of Founder of System Named as Successor. C.S. Woolworth Elected to Newly Created Position as Chairman of the Board. . H.T. Parson was elected President of F.W. Woolworth Co. yesterday at the organization meeting of the Directors, to succeed the late Frank W. Woolworth, founder of the system of 5 and 10 cent stores. . . June 12, 1919 . December 4, 2011 .
  37. This and subsequent presidents through the present from Funding Universe
  38. News: Robert L. Jennings, Executive, 64. The New York Times. April 18, 1993. subscription.
  39. News: Woolworth Exec to Retire . Chicago Tribune . March 14, 1995 . January 1, 2021.
  40. Web site: RICHARD A. JOHNSON TO RETIRE AS CHAIRMAN AND CEO; MARY N. DILLON APPOINTED AS CEO, EFFECTIVE SEPTEMBER 1, 2022 . August 14, 2022 . December 21, 2022.
  41. Web site: Control Dinamico SA acquires Woolworth Mexicana SA de CV from Foot Locker Inc (1997/12/08) – Thomson Financial Mergers & Acquisitions . AlacraStore.com . December 8, 1997 . July 11, 2010. https://web.archive.org/web/20090414100948/http://www.alacrastore.com/storecontent/Thomson_M&A/Control_Dinamico_SA_acquires_Woolworth_Mexicana_SA_de_CV_from_Foot_Locker_Inc-778366040. April 14, 2009.
  42. Web site: Localización/Woolworth . Woolworth.com.mx . July 11, 2010 . https://web.archive.org/web/20080302233450/http://www.woolworth.com.mx/loc-wool.htm%23 . March 2, 2008 . dead.
  43. News: The Bargain! Shop . About us . October 18, 2012. https://web.archive.org/web/20091026035533/http://www.tbsstores.com/about.php. October 26, 2009.
  44. Web site: Woolworth sells stores in Canada . . January 14, 1994 . January 1, 2021.
  45. Web site: Foot Locker Canada Inc. . Business Profiles . January 2, 2021.
  46. News: Woolworths stores to shut by early January. . Administrators for Woolworth's announced plans Wednesday to close all the retailer's stores by the early new year, signaling the end of the road for the venerable British company and the loss of almost 30,000 jobs. However the brand has reappeared as an internet store at www.woolworths.co.uk, owned by the Group's Directing firm Kingfisher Holdings ... . Associated Press.
  47. Matthew. Chapman. Shop Direct closes Woolworths site as brand name sell-off speculation begins. Retail Week. June 1, 2015. January 1, 2021.
  48. Web site: Woolworths the fresh food people . Woolworths . September 22, 1924 . July 11, 2010 . https://web.archive.org/web/20100529053250/http://www.woolworths.com.au/wps/wcm/connect/website/woolworths/about-us/our-story/september+-+1924/september+1924 . May 29, 2010 . dead .
  49. Web site: Woolworths . dead . https://web.archive.org/web/20110722105015/http://www.woolworths.co.za/caissa/caissa.asp?Page=ITB4_RHContext&Post=WW_OurStores_Franchise . July 22, 2011 . July 11, 2010 . Woolworths Holdings.
  50. News: Woolworths strong. Peter. Thorne. November 26, 2008. CBC News. https://web.archive.org/web/20081218152209/http://www.cbc.bb/index.pl/article?id=2708969. December 18, 2008.