Woolco
Encyclopedia
Woolco was an American-based discount retail chain. It was founded in 1962 in the city of Columbus, Ohio
, by the F.W. Woolworth Company. It was a full-line discount department store unlike the five-and-dime Woolworth stores which operated at the time. At its peak, Woolco had hundreds of stores in the US, as well as in Canada
and the United Kingdom
. While the American stores were closed in 1982, the chain remained active in Canada until it was sold in 1994 to rival Wal-Mart
. Most of the former UK Woolco stores were renamed Woolworth.
The first Woolco stores were located on the outskirts of Columbus, Ohio
. By 1966 there were 18 in the United States and nine in Canada. Plans were for 30 stores to be added per year. This led to tremendous growth as over 300 Woolco stores opened up across North America by the mid 1970s.
The company experimented with both Woolco and a more downscale merchandising unit called Worth Mart in the mid 1960s. Woolco was the eventual winner with customers, and the Worth Mart stores were folded into Woolco's store base by the 1970s.
At the outset, Woolco stores were considered by the company to be "promotional department stores," with expanded product lines and other amenities not typically found at namesake Woolworth stores.
Many locations contained Red Grille restaurants (actually a cafeteria
style outlet), and the food
areas sold popcorn
, real milkshake
s, and other food.
A number of Woolco stores were opened in the UK in the same period. These were spun off along with the British Woolworths
chain in 1982 and subsequently sold by Kingfisher plc
to Gateway
in 1986 and Asda
in 1988.
Starting in the late 1970s, Woolworth enacted a cost-saving plan for Woolco that included a reduction in floor space for the largest locations, the elimination of most leased departments and an expansion into smaller markets with stores as small as 60000 square feet (5,574.2 m²). During this period, the excess space in some larger Woolco stores went to a Woolworth-owned off-price clothing retailer called J. Brannam, which was short for "Just Brand Names"
By 1979, it became clear that the earlier cost-saving plan would not be enough to save Woolco from failure, so Woolworth combined the discount store operating unit with its variety stores and began to close stores in unprofitable markets including Chicago.
in 1982, with all 336 stores closing. However, the Canadian
division of approximately 120 stores remained open. In 1990, 26 Woolworth stores in Canada were converted to Woolco because of their larger size. In 1994, in order to repay the $1.7 billion debt incurred from international specialty store expansion, the Woolworth Corporation sold most of the Woolco Canada stores to Wal-Mart Canada
. Wal-Mart did not acquire the Woolco stores that were either unionized or had downtown locations. Some Woolco stores were sold and re-opened as Zellers
stores.
. Competitors Woodward's
& Eaton's
ran "$1.49 Days" usually the first Tuesday each month. Some stores also contained an automotive and tire service department. Most stores in Canada had an in-store restaurant section where shoppers could eat food such as hamburgers, hot dogs and french fries or salads and small meals like chicken fingers and fries. These restaurants were named The Red Grille.
Columbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
, by the F.W. Woolworth Company. It was a full-line discount department store unlike the five-and-dime Woolworth stores which operated at the time. At its peak, Woolco had hundreds of stores in the US, as well as in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. While the American stores were closed in 1982, the chain remained active in Canada until it was sold in 1994 to rival Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
. Most of the former UK Woolco stores were renamed Woolworth.
Creation
The creation of Woolco coincided with the expansion of suburbia. Woolworth's flagship stores were still doing well, but the company wanted to tap into the growing discount department store market without diluting its dominant position in the variety store business.The first Woolco stores were located on the outskirts of Columbus, Ohio
Columbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
. By 1966 there were 18 in the United States and nine in Canada. Plans were for 30 stores to be added per year. This led to tremendous growth as over 300 Woolco stores opened up across North America by the mid 1970s.
The company experimented with both Woolco and a more downscale merchandising unit called Worth Mart in the mid 1960s. Woolco was the eventual winner with customers, and the Worth Mart stores were folded into Woolco's store base by the 1970s.
At the outset, Woolco stores were considered by the company to be "promotional department stores," with expanded product lines and other amenities not typically found at namesake Woolworth stores.
Many locations contained Red Grille restaurants (actually a cafeteria
Cafeteria
A cafeteria is a type of food service location in which there is little or no waiting staff table service, whether a restaurant or within an institution such as a large office building or school; a school dining location is also referred to as a dining hall or canteen...
style outlet), and the food
Food
Food is any substance consumed to provide nutritional support for the body. It is usually of plant or animal origin, and contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals...
areas sold popcorn
Popcorn
Popcorn, or popping corn, is corn which expands from the kernel and puffs up when heated. Corn is able to pop because, like sorghum, quinoa and millet, its kernels have a hard moisture-sealed hull and a dense starchy interior. This allows pressure to build inside the kernel until an explosive...
, real milkshake
Milkshake
A milkshake is a sweet, cold beverage which is made from milk, ice cream or iced milk, and flavorings or sweeteners such as fruit syrup or chocolate sauce....
s, and other food.
A number of Woolco stores were opened in the UK in the same period. These were spun off along with the British Woolworths
Woolworths Group
Woolworths Group plc was a listed British company that owned the high-street retail chain, Woolworths, as well as other brands such as the entertainment distributor Entertainment UK and book and resource distributor Bertram Books...
chain in 1982 and subsequently sold by Kingfisher plc
Kingfisher plc
Kingfisher plc is a multinational retailing company headquartered in London, United Kingdom. It is the largest home improvement retailer in Europe and the third-largest in the world...
to Gateway
Somerfield
Somerfield was a chain of small to medium sized supermarkets operating in the United Kingdom. The company was taken over by the Co-operative Group on 2 March 2009 in a £1.57 billion deal, creating the UK's fifth largest food retailer. The name is currently being phased out and replaced by the...
in 1986 and Asda
Asda
Asda Stores Ltd is a British supermarket chain which retails food, clothing, general merchandise, toys and financial services. It also has a mobile telephone network, , Asda Mobile...
in 1988.
Demise
The typical Woolco store was well over 100000 square feet (9,290.3 m²), which was quite large for a discount store of that era. Many of its departments were leased to third-party operators, a common practice among early discounters.Starting in the late 1970s, Woolworth enacted a cost-saving plan for Woolco that included a reduction in floor space for the largest locations, the elimination of most leased departments and an expansion into smaller markets with stores as small as 60000 square feet (5,574.2 m²). During this period, the excess space in some larger Woolco stores went to a Woolworth-owned off-price clothing retailer called J. Brannam, which was short for "Just Brand Names"
By 1979, it became clear that the earlier cost-saving plan would not be enough to save Woolco from failure, so Woolworth combined the discount store operating unit with its variety stores and began to close stores in unprofitable markets including Chicago.
Closure
Woolco ceased operations in the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in 1982, with all 336 stores closing. However, the Canadian
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
division of approximately 120 stores remained open. In 1990, 26 Woolworth stores in Canada were converted to Woolco because of their larger size. In 1994, in order to repay the $1.7 billion debt incurred from international specialty store expansion, the Woolworth Corporation sold most of the Woolco Canada stores to Wal-Mart Canada
Wal-Mart Canada
Wal-Mart Canada Corp. is the Canadian unit of Walmart and was founded in 1994 in Mississauga, Ontario with the purchase of the Canadian Woolco stores from Woolworth Canada....
. Wal-Mart did not acquire the Woolco stores that were either unionized or had downtown locations. Some Woolco stores were sold and re-opened as Zellers
Zellers
Zellers Inc. is Canada's second-largest chain of mass merchandise discount stores, with locations in communities across Canada. A subsidiary of the Hudson's Bay Company , it has 273 locations across the country....
stores.
Canada
In a smaller, less crowded retailing market, Woolco had a bigger impact in Canada than it did in the US. There were 160 stores in Canada at dissolution. They were so well-known that Canadian songwriters Leon Dubinsky and Max McDonald even wrote a popular song called "Working at the Woolco Manager Trainee Blues" (1977). During the 1970s and '80s, the Canadian stores were well-known for their monthly "$1.44 Days", wherein numerous items were sold at a price of $1.44 CADCanadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
. Competitors Woodward's
Woodward's
Woodward's was the name of a department store chain which operated in Alberta and British Columbia, Canada for one hundred years, before its sale to the Hudson's Bay Company .-History:...
& Eaton's
Eaton's
The T. Eaton Co. Limited was once Canada's largest department store retailer. It was founded in 1869 in Toronto by Timothy Eaton, an Irish immigrant. Eaton's grew to become a retail and social institution in Canada, with stores across the country, buying offices across the globe, and a catalogue...
ran "$1.49 Days" usually the first Tuesday each month. Some stores also contained an automotive and tire service department. Most stores in Canada had an in-store restaurant section where shoppers could eat food such as hamburgers, hot dogs and french fries or salads and small meals like chicken fingers and fries. These restaurants were named The Red Grille.