Woolworth Syndicate Stores conquer North America's big cities
Initially Frank Woolworth hoped to open 5 & 10¢ Stores in cities, but each time he tried, he failed. All of his most successful branches were in rural areas and small towns. As his Buying Syndicate grew in confidence, members repeatedly chanced their arms in cities, hoping that the growing popularity of the five-and-ten would carry the day. The publicity machine put out stories of success, with press releases stating new openings were 'our largest ever' or had recorded 'our highest ever opening day sales'. For example in 1891 Frank Woolworth gave interviews about his huge, new store in Rochester, New York, declaring that its first week was the best ever, with $5,217 passing through the tills. The bravado glossed over the fact that annual rental alone was $20,000, and that he had been forced to pay extra wages to attract the right clerks. The store would have to match its first week's volume every week to match the profits generated by its country cousins.
In 1895 Seymour Knox struck on a much more effective city centre formula when he opened in Detriot, Michigan. He invested in a much smarter shopfit, creating a department store atmosphere. This incorporated wider aisles, improved fixtures, brighter lighting and more attentive service. He extended the displays of items that he believed would suit city dwellers, scaling back items that were geared to the countryside. He also made certain that the store had plenty of five cent items, insisting that his manager did not pack the store with dearer ten cent lines. The rethink worked; sales were an order of magnitude greater from day one.
The Detroit store started out small. Within two years it had expanded to take over the whole city block, and was still crowded throughout the day. When Knox described his 5 & 10¢ as "the most favorite spot in Detroit" in his publication Views of Detroit and Vicinity, he meant it!
The next major Knox store in State Street, Chicago was an ever bigger hit, and encouraged him to take the new look into Canada, with a superstore at Queen and Young Street, Toronto. He shared news of the successes with his Syndicate partners, who eagerly adopted his ideas. Charlton responded with spectacular openings in Los Angeles and San Francisco, California. Frank Woolworth made major styling changes in 1895. The branch in Fulton Street, Brooklyn, NY adopted all of Knox's ideas when in opened on 16 November. It was radically different from the Woolworth's in Washington, DC which had opened just three months earlier.
Sumner Woolworth applied the upgrade to all of his stores, large and small. His approach to the 5 & 10¢ business was very different from brother Frank. He chose quality over quantity, generating much higher sales and profit per foot in every store rather than dashing to open as many branches as possible. Each outlet was carefully crafted, and looked resplendent in the finest mahogany, with brightly polished floors and windows. Fred Kirby was also more cautious, preferring to see the others bed in the formula while continuing to open smaller branches. When he was ready, he tested a revised layout in Fall River when he relocated his flagship to South Main Street in 1908 and perfected it in his iconic 5 & 10¢ in Canal Street, New Orleans, Louisiana, when it opened in 1910. It was one of the finest in the Syndicate, and is fondly remembered to this day.
Frank's stores in Washington DC, Philadelphia, Boston, and New York City were a far cry from his first ramshackle displays in 1879. They had fine mahogany counters and showcases, bright electric lighting and a glass tube payment system that raced payments to the office and returned receipts at lightening speed.
In 1917 the 1000th store was his most radical, Snubbing convention, he pitched a 5 & 10¢ in Fifth Avenue, New York. It was constructed in marble and portland stone, had escalators and smart lifts, three restaurants and even a reading room, aping Selfridges in London. And not one item on its four floors was over ten cents!
Shortcuts to related content in the Woolworths Museum