Companies that vanished: Woolworth's, the granddaddy of the five-and-dimes


This post is part of a series on some of the most memorable companies that have disappeared.

On February 1, 1960, in Greensboro, North Carolina, four African-American students sat down at a segregated lunch counter in a Woolworth's store. That touched off a series of sit-ins and boycotts that spurred the U.S. civil-rights movement.

Founded in 1879 in Lancaster, Pennsylvania, F.W. Woolworth stores were the epitome of the American five-and-dime discount retailers, and the company was one of the largest retail chains in the world through much of the 20th century.

By 1910 the company was successful enough to commission the Woolworth Building in New York City, the world's tallest skyscraper until the completion of the Chrysler Building in 1930.

Woolworth's became the model for many other five-and-dimes throughout the United States. Oddly enough, such discount stores were sometimes criticized for driving local merchants out of business, a charge that would later be leveled at big-box stores.

As the era of the enclosed shopping mall arose, Woolworth's responded by acquisition and expansion, buying such specialty shops Kinney Shoes, Champs Sports, and Foot Locker. But rapid expansion proved to be the company's undoing. By 1997 all Woolworth's shops had closed, and Wal-Mart (NYSE: WMT) replaced Woolworth's on the Down Jones Industrial Average. In 2001, the company changed its name to Foot Locker (NYSE: FL), and it can still be found in shopping malls everywhere.

While the Woolworth name lives on in retail chains in the United Kingdom, Germany, Mexico, and elsewhere, the era of the five-and-dime and the lunch counter are long gone, replaced for better or worse by the likes of Amazon.com (NASDAQ: AMZN) and eBay (NASDAQ: EBAY).

Let us know in the comments what you miss about Woolworth. And be sure to check out other Companies That Have Vanished.

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Last updated: February 13, 2012: 06:04 AM

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