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The sad demise of the UKs largest confectionery retailer |
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Friday, 28 November 2008 |
Despite government efforts to save it, and after much speculation about
its future, Woolworths has gone into administration just a year before
its 100th birthday.
The retail chain, which opened its first UK shop almost 100 years ago, has debts of £385 million. Its 800 outlets are expected to shut for good after Christmas, unless a buyer can be found.
Woolworth was founded by Frank Winfield Woolworth in the US. At the age of just 27, he found himself with a modest capital of £60 and invested it all into a store solely devoted to miscellaneous articles retailing at either 5 or 10 US cents. Ironically, it was always one of Woolworth's boasts that he had never borrowed money in the whole of his business career.
The first UK store was opened in 1909 in Liverpool. No item was on sale for more than sixpence - 2.5 pence in today's currency. The chain proved to be a great success with British consumers and expanded rapidly to become a stalwart of the high street, selling everything from sweets to music and toys. It has often been referred to as the UKs largest confectioner, and was a pioneer in selling ‘pick n pix’ confectionery.
Woolworths demise has been mirrored by the ascent of the large supermarkets, where shoppers are now able to purchase everything they would, traditionally, have purchased in Woolworths, for the same price or cheaper, along with their weekly grocery shop.
Time will tell whether the brand will survive, but it will certainly be a great loss to UK pick ‘n’ mixers if it does not.
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