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Highlight of the high street still pulls them in even as the wonder of Woolies fades

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The public's take on the demise of Woolworth's
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Published Date: 27 November 2008
AILEEN McEwen remembers the halcyon days of Woolworths when, as a schoolgirl, she would rush round its wooden-floored aisles before placing her carefully chosen bag of pic 'n' mix on the mahogany counter.
It is a childhood memory universal to almost every Scot. If not on confectionery, pocket money was spent on hit singles or the latest toys.

And even in the age of Amazon, Ms McEwen, 33, remained faithful to the store in Helensburgh. "I've been coming here since I was buying sweeties in my schooldays," she says. "It's got great variety, and you can't beat things like the Ladybird children's clothes."

Yet the nostalgic pull of Woolies is not enough to save it. Years of falling profits and increased competition yesterday culminated in the announcement that administrators had been appointed to its retail arm.

Had the famous name survived a little longer, it would have been a century since the canny New Yorker Frank Woolworth exported his "five and dime" concept to these shores.

The notion – offer a bewildering array of mass-market goods cheaply – thrived beyond the post-war years.

The swinging sixties saw more than 1,000 Woolworths stores scattered throughout Britain; even notoriously hard-to-please social circles in Edinburgh relished a cuppa in its Princes Street tearoom. But despite the praises of shoppers such as Ms McEwen, the Woolworths of the 21st century occupied a muddled, if fondly regarded position on the high street.

Take Helensburgh in Argyllshire, where, following the departure of the Co-op two years ago, Woolies has been one of the main retail presences.

Inside, the merchandising is bamboozling. Yesterday, posters of pop stars and actors were stacked next to tablecloths, while Dairy Milk bars were offered alongside skipping ropes.

A lure, maybe, to empty the purses of guilty chocoholics, but it came across as little more than organised bric-a-brac. One wall is dominated by the famous pic 'n' mix racks, offering the very worst of dentists' nightmares.

David Mullen best described the shopping experience within. "Fusty," he proclaimed. Not that Mr Mullen should be considered a critic of the West Clyde Street outlet. "Woolworths is cheap and cheerful," the 29-year-old added. "It's got a good variety. You can go in there for an ironing board and you'll maybe pick up gardening tools.

"It does have a dowdy, fusty old image, but the shop's been here since I was young and my mum and dad say they remember it being here long ago." His sister, Ms Mullen, had a similar view.

"It's not one of those stores that would be my first choice if I was going out shopping, or go out of my way to call into, but you'll usually pop in and leave with a CD or DVD you weren't looking for," she said.

"Put it this way, if you walked down the street tomorrow and found it was no longer there, then you would miss it."

Yesterday, Woolies had provided her with a present for a new baby – a cuddly lion.

It is an example of the diverse product range that has repelled as many shoppers as it attracted, but as administrators rake over its carcase, it appears the former king of the retail jungle will roar no more.

Click here to read Deputy Business Editor Scott Reid's blog on the demise of Woolworths


History of an all-round favourite

1879: Frank Woolworth opens his first store filled with five-cent merchandise. The New York branch is not a success, but a similar outlet in Pennsylvania attracts crowds.

1909: Woolworths' first subsidiary in the UK opens in Liverpool. There are vast crowds.

1920s: A Woolworths is opened every 18 days.

1950s: The company embarks on a huge expansion programme at the beginning of the decade, with 330 openings over a six-year period.

1982: The chain is taken over by Patermoster, later to become Kingfisher.

1990s: Big W stores open to compete with superstore retailers, but the idea fails.

2001: Floated on the London Stock Exchange.

2002: Poor Christmas sales and overstocking see the chain make losses of £46 million.

2006: Pre-tax profits fall 20 per cent to £43.7 million, blamed on competition for clothing sales.

2007: Further poor sales results mean the future of the brand is questioned by City analysts.

Page 1 of 1

  • Last Updated: 27 November 2008 1:02 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Woolworths , Video Archive
 
1

Kipling,

27/11/2008 00:53:08
The Westminster government has its priorities wrong. It's putting millions into the hands of rich bankers and financiers, when all that would tide this marvellous retail tradition called Woolies is a teeny weeny interest-free loan of 385,000,000. We will have, however, Burdale Financial and GMAC Commercial, to thank for the disappearance of this British high street reference point.

This following should teach retailers to trust in this kind of asset-based lending:

From GMAC financial services media centre:
http://media.gmacfs.com/index.php?s=43&item=31

"LONDON (Feb. 8, 2008) –GMAC Commercial Finance (GMAC CF), a part of GMAC Financial Services, and Burdale Financial Limited (Burdale), a member of Bank of Ireland Group, announced financing for Woolworths Group plc, which has entered into agreements to refinance its current bank revolving credit and other facilities with a new four-year facility totaling £385 million (USD766 Million). The new financing, represents the largest asset-based lending facility of its type to be closed in Europe, will provide the Group with greater flexibility with their near- and long-term working capital requirements, as the company's Entertainment Wholesale business continues to develop. .....

"Commenting on the new financing, Stephen East, Group Finance Director of Woolworths Group plc. said, “The new financing arrangements provide the Group with flexible long-term facilities, which will enable its continued development and in particular, support the growth in the Entertainment Wholesale businesses.”

"Also commenting, Dennis Levine, Chief Executive at Burdale said, “Burdale looks forward to working with Woolworths' management as it continues to expand into new growth areas. The innovative financing facility now in place has been tailored to assist management in driving the business forward and its flexibility is one of the hallmarks of the large, complex asset-based lending structures that has earned Burdale its reputa
2

Kipling,

27/11/2008 00:54:20
-tion in this niche sector.” ... "

For 'niche' read 'nick', as in 'to nick'.

"GMAC Commercial Finance plc is one of the U.K.'s leading independent corporate and commercial funding specialists, providing bespoke financing solutions to middle market companies throughout the U.K. and Continental Europe. .....

"Burdale Financial Limited, a member of Bank of Ireland Group, is a leader in Comprehensive Asset-Based Lending (“CABL”) operating in the UK, Europe and the US. CABL is one of the most advanced forms of asset-backed commercial finance and a powerful way of leveraging a company's underlying assets. ...."

I'd say 'jemmying' a company's assets would have put it more honestly.
3

Charles Linskaill,

Edinburgh 27/11/2008 01:06:34

Yes! we all loved Woolworht's!

My childhood memories are the one in tollcross Edinburgh, when the store extended round the corner,...

...'Toy's Galore'! and if you were a 'good boy' mummy or daddy purchased you one. :)

Well over the years and especially the last 10years, their 'Demise' equals only one thing, forget the state of the economy!

Their 'Demise' is due to one word and one word only,...

...'Complacency'!!

They simply never kept up with the times, never revamped their stores.

Look at all the shops that do well, they have a over the weekend or night 'Face-lift', this is every 3-4years!

Sommerfield, Scotmid, now Tesco, all fall into this 'Trap' of "Complacency", who's next?

Like Life, if you play with,..'Tin Soldiers, and 'Train-sets' all your life, you will 'Grow Mold'!

Unlike you Charles!, who keeps,...'up-to-date', and still gets the,..'Clicks' from the 'Babes'! ::))
4

Charles Linskaill,

Edinburgh 27/11/2008 01:32:27

re: error last sentence correction,..

...Unlike *your* Charles!, who keeps,...'up-to-date',..


(don't know why I miss out the letter 'r', repeatedly)

5

drunken proffet,

Tassy 27/11/2008 06:49:40
It is just a repeat of what happened in the late seventies. Money is different, you could have bought the entire UK industrial base for ten billion. However the end result is similar, then 50% of small UK businesses went to the wall. You know the guys who bought local and were not into importing from China or wherever. Which lead naturally to a large percentage of the UK manufacturing businesses going to the wall. The resulting downturn of course results in a lot of businesses going to the wall who will be difficult to replace. I have heard that the GUM stores in Russia reckon to go international so you could be lucky.:~)
6

,

27/11/2008 09:07:25
Comment Removed By Administrator
Reason:
7

Dark Lochnagar,

Symington 27/11/2008 11:32:09
There has been a GLOBAL downturn in the Pick 'n' Mix market worldwide. It is impossible to get a wee sherbet dip in any of the EC countries and as for the Far East is concerned, don't ask! BROON AND DARLING COMING TO A JOB NEAR YOU SOON!
8

Bruce's spider,

27/11/2008 11:44:18
What has really killed Woolworths are the same forces that are damaging M&S, WH Smith, Boots and others. Namely, the internet and out of town retail parks. I remember when a walk along Princes Street in Edinburgh was a joy because of the diverse array of shops on offer. Look at it today, its a dump. Its as though a disease entered the retail bloodstream at Newington and swiftly worked its way up through Clerk Street and the Bridges and on to Princes Street. Its like a vast intestine full of detritus. The number of take aways, charity shops, hairdressers defies belief. We are the idiot generation though who can't cook, buys cheap tat rather than things that last and who act before we think because thinking requires effort.
9

Jay Kay,

27/11/2008 13:13:15
Gordon "the Gheko" Broon is alive and well and living right here in the UK, can the Americans come and take the p*ick back please because he is ruining our economy.
10

nick prince,

warrington 27/11/2008 13:52:12
mr kipling and mr bruce's spider are, to me at least very correct, predatory super rich lenders distort everything and with it the retail infrastructure, now our social life is damaged. Mr Spider, I especially like the way you put it, a disease in the retail bloodstream and an intestine of detritus, just like anytown u.k.

you write for a living?
11

Ken26,

Ontario, Canada 27/11/2008 13:57:12
Same thing happened in Canada in 1994 when Woolworths here also went under because it had failed to keep up with the times. Walmart revived the carcass to become a thriving retail giant because it offers what the consumer wants - good, well-priced merchandise in stores that are well laid out, and well lit.

It is unfair to blame governments when businesses make poor decisions or become complacent. A perfect example of this is the Detroit 3, who after years of making terrible business decisions and ignoring consumer trends are now looking for US and Canadian taxpayers to bail them out so they can keep on making bad decisions. It may be sad when a long standing "icon" goes down but, realistically, sometimes businesses have to fail so that something better can arise from the ashes.
12

long live the supermarkets,

every little hurts 27/11/2008 14:56:17
I think we are all to blame for woolies demise including myself most things they sell i can buy in the far too many supermarkets in my town, they were trying to be all things to all the people with nobody understanding what they stand for.The busiest shops i see are Poundland, Primark, Card factory people know what to expect in these stores.Anyway where will i buy my broken biscuits from now?
P.S. Google Barbara Hutton fantastic story of Poor Girl Rich Girl.
13

nick prince,

warrington 27/11/2008 15:19:48
It is not unfair to blame goverments for allowing the emergence of powerful monopolies promoted by large commercial concerns with pots of wealth, the world is now dominated by undemocratic and psychotic big businesses which will homogenise society. They can and must be legislated away.
14

,

27/11/2008 15:28:05
Comment Removed By Administrator
Reason:
15

Bruce's spider,

27/11/2008 17:18:39
I think we need to look at the bigger picture here. The demise of Woolworths is a microcosm of what has been happening to the High Street for years. Shops in the High Street, be they large retailers like Boots or small independent retailers, face higher rates than out of town retailers and the never ending problem of attracting shoppers who may struggle to get parked near the shops they wish to visit. In short the odds are stacked against the town centre and legislation has allowed a proliferation of retail parks, megastores and industrial estates to spring up and compete with them on such unfair terms. Yet the High Street is worth saving because it does have advantages over its out of town competitors that no one talks up. If you buy anything from the internet you don't get the chance to pick it up and look it over before you buy it. Am I the only one who has bought something and when it turns up it(having had to wait for it to be delivered)it isn't as expected? of course you then have the hassle of packaging it up to return it. Ditto Tescos and Wal Mart who's quality of product rarely approaches that of a High Stret shop like say M&S. Older people talk nostalgically about how High Streets up and down the land used to be before they were ravaged by the very forces already mentioned. A place where people could wander around browsing, bump into friends and family and where the whole feeling of community was underlined. While the politicians may have failed the High Street I won't. I haven't shopped in a Tescos this year and won't be buying any xmas presents over the internet over the festive. It may cost me a few pounds more but I'm prepared to pay it because the High Street is worth saving. Wherever you live I'd urge you to do the same and is enough of us do so maybe there'll be life in the old dog for a while yet.
16

Kitti Kat,

Newtown Square 27/11/2008 19:20:06
I too remember shopping at Woolies as a kid and a young(er) woman. Alas, we no longer have a Woolworth's and my kids don't even know what it was. I have great memories of buying Christmas "presents" for my parents and sisters with the money I earned baby-sitting. Shopping in malls is no fun - at least for me. It's a "young person's" area. Oh for the "good old days".
17

nick prince,

warrington 27/11/2008 22:08:43
but vincent, did not the mega banks with their profligate lending indulge in poor decision making?

Yet it does seem the responsibility of the government to bail them out. I do not think that a world in subjugation to the needs of big business is an inaccurate picture, it's accurate alright. Woolworth's however did stay a long time in the same mould, the one in my town now has many competitors doing the same things better. Thirty years ago all the pop kids bought records there and the beeny bops had their pick and mix.
18

,

27/11/2008 22:48:50
Comment Removed By Administrator
Reason:
19

Beverly,

New York 28/11/2008 07:08:04
Alas, we lost Woolworth's in New York and the rest of the States quite a few years ago. Yes, you will miss it. Nothing else has its cheerfully serendipitous assortment of niche items that you simply cannot find most other places. People now trudge dispiritedly to Kmart and Walmart and the like, only to face acres of shelves stocked with hundreds of identical, cheap dreck items from China.

No more lunch counters and soda fountains. No more candy counters. No more enticingly cheap toy departments, where a child can spend a carefully hoarded allowance and get his or her own presents for family and friends.

No more notions departments. And where, exactly, are you going to find sand chairs and beach umbrellas and licorice assortments and books for a song?

And no one, but no one, has Christmas goodies and decorations like Woolies did. Frank Woolworth started the vogue for blown glass ornaments from Germany. Beautiful, and inexpensive.

Woolies has been a bright spot for many a home with modest income, and they will be sorely missed over there as they are here. Very, very sad.
20

nick prince,

warrington 28/11/2008 12:19:20
vincent, did you not hear a term, sub prime mortgages?

yes the banks have made poor decisions and they have been handsomely protected from the consequences thereof, claptrap in your view.
21

mcbogtrotter,

mccalifornia 29/11/2008 00:00:41
16 and 20 spider and bev.
Your quite right, I can not help but think, maybe the business plan was right and we as a people are wrong. We seem to be rushing to no where in particular.

 

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