Future bleak for U.K.'s Woolworths

ByABC News
December 1, 2008, 9:48 AM

LONDON -- One of this country's most-cherished U.S. imports Woolworths, the British descendant of the old American five-and-dime store is in danger of disappearing after nearly a century of business.

Enduring affection for the store's old-school candy counters, toys and inexpensive household goods had sustained the brand's survival here more than a decade after it disappeared in the United States. Yet, amid a global financial crisis and changing tastes in retail, the company's directors said last week they were seeking administration, a move similar to bankruptcy protection in the U.S.

The news jolted the public so badly that Prime Minister Gordon Brown stepped in and vowed the British government would do everything possible to ensure that Woolworths' 815 stores would stay open, and its 30,000 employees would have jobs through Christmas.

"I will be sad to see it go," said Deborah Salloum, 45, as she exited the Woolworths store on busy Camden High Street in north London Saturday with a bag of just-purchased lights for her Christmas tree. "It's just always been there. I don't know what will replace it."

Woolworths or "Woolies," as it's affectionately known here started in Britain in 1909. The first store was opened in Liverpool by Frank Woolworth, who founded the American five-and-dime stores that carried his name in 1878 in Pennsylvania. Stores here were like those across America: They offered everything a household needed at an inexpensive price.

"You can get all that you want," said Salloum's husband, Michael, 32. He left with new salt and pepper shakers for his nearby restaurant.

Inside the Camden "Woolies," Christmas wrapping paper is available for the equivalent of $2-$3. You can get a cheese grater for about $5. Candy, DVDs, bed sheets, toys like Power Rangers, pencils and writing paper can be had for the equivalent of $1 to $20. Cluttered shelves hold everything from dishes to leftover Halloween costumes.

U.S. stores, called Woolworth's, began closing in the 1980s before the U.S. company that owned them gave up operating as a general discount retailer in the 1990s. A British firm bought the stores in Britain in 1982 and continued to operate. Similar retail stores carrying a version of the old Woolworth name operate separately in Germany, Mexico and South Africa.