Woolworths, once an American icon, disappears from U.K.


Time was that F.W. Woolworth Co. was as much a part of America as baseball and hot dogs. The company was so successful that founder Frank Woolworth paid for the construction of the Woolworth Building in New York City, once the tallest building in the world, in cash. Today, the brand is largely unknown by shoppers under age 30, who may hear about Woolworth's only when they learn in school about the famous sit-in at the store's location in Greensboro, N.C., during the Civil Rights era.

Woolworth's, which ceased operating in the U.S. in 1997, used to symbolize the U.S. in other parts of the world, too, but the brand is continuing to fade. Reports from the U.K. say the Woolworths chain (the Brits don't use the apostrophe), which has been separate from the American parent for 25 years, is closing because it had been unable to find a buyer. The 815-store chain has 385 million pounds in debt, according the Independent newspaper.

Customers seemed to like the fact that Woolies -- its nickname in the U.K. -- sold a bit of everything. That's what people liked about the U.S. stores as well, from what I remember. In today's specialized retail world, though, this huge selection represents a problem. "To an analyst, that looks like a terrible lack of focus," the Independent said. Wal-Mart Stores Inc. (NYSE: WMT), which perfected Frank Woolworth's discounting strategy and drove the company he founded out of business, is one of the few that can get away with that approach today.

Woolworth's still brings back memories for many people.

I remember visiting a few Woolworth's when I was a kid in the 1970s and 1980s. They seemed grungy compared with the places my family usually shopped, such as Sears (NYSE: SHLD). I remember thinking it was weird that people would eat lunch in the middle of a department store.

Woolworth's was in some ways a victim of its own success. The five and dime concept it pioneered eventually morphed into the discount stores we know today. Woolworth's closed its remaining department stores in the U.S. in 1997 and changed its name to Venator as it became a sporting goods retailer. The firm is now known as Foot Locker Inc. (NYSE: FL). Ironically, Woolworth's was replaced in the Dow Jones Industrial Average by Wal-Mart.

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