WOOLWORTH CO.

in full F.W. Woolworth Co., American company that developed a large chain of general-merchandise retail stores based on the concept of the five- and ten-cent store. Woolworth evolved into a multinational corporation with a large collection of specialty retail stores on four continents. Its headquarters are in the Woolworth Building in New York City. The company was founded by Frank Winfield Woolworth (18521919), the originator of the five-and-ten variety storei.e., a store that sells all items in stock for 10 cents or less. Woolworth founded his first five-cent stores in Utica, N.Y., and Lancaster, Pa., in 1879. The latter store was successful, especially after the price ceiling was raised to 10 cents, and in the next decade Woolworth opened some 21 more stores in towns in Pennsylvania, New Jersey, New York, Delaware, and Connecticut, the majority of which were financed and managed in partnerships. By the end of 1904 there were 120 stores in 21 states extending westward as far as Colorado. Woolworth founded his success on volume buying, counter-display merchandising, and cash-and-carry transactions. In 1905 he incorporated, as F.W. Woolworth & Co., and in 1909 he founded F.W. Woolworth and Co., Limited, to serve Great Britain and Ireland. Then in 1911 he invited four rival American retail chains to merge their businesses with his and form a single national corporation. The four rival retailers were Seymour Horace Knox (Woolworth's first cousin), with 108 five-and-tens; Fred Morgan Kirby, with 84; Charles Sumner Woolworth (Frank's brother), with 14; and Earle Perry Charlton, with 48. Woolworth's own giant company at the time of the merger had 319 stores. Agreements were signed on Nov. 12, 1911, and the new consolidated company, with 596 stores coast to coast, assumed the F.W. Woolworth Co. name. The new company's headquarters, the Woolworth Building (1913) in New York City, was the tallest skyscraper in the world for a time. By 1929 Woolworth had about 2,250 outlets, and its stores continued to proliferate in the United States and Britain. The company raised its price ceiling to 20 cents in 1932 and abolished price limits altogether in 1935. The company purchased the shoe manufacturer and retailer G.R. Kinney Corporation (founded 1894) in 1963 and the Australian shoe store chain Williams the Shoemen in 1969. In 1982 it sold a controlling interest in its British subsidiary. Over the years Woolworth acquired other store chains dealing in sportswear, shoes, and children's wear. The company's Foot Locker chain of athletic-shoe retailers proved especially successful. The Woolworth Company had a total of 8,386 stores worldwide by 1992, but it was meeting increased competition from the Kmart Corporation (formerly S.S. Kresge) and other high-volume discount retailers. These pressures compelled Woolworth to rely more and more on its Foot Locker, Kinney Shoes, and other specialty stores. Woolworth closed its remaining variety stores in the United States in 1997, thus abandoning its traditional general-merchandise retail business there.