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1920s overview - a change at the top in Britain leads to faster growth

 

Fred Moore Woolworth (left) and William Lawrence Stephenson (Right), the first two Managng Directors of F. W. Woolworth & Co. Limited in the UK. These two men shaped the company and set it on the road to success.Fred Moore Woolworth, Frank's second cousin, was the founding MD in Britain. He had extensive experience of managing stores and the reshipping warehouse in the USA, and had inherited some of cousin Frank's bravado.

Under his leadership the formula took hold more quickly than it had in North America. He successfully anglicized the formula, giving the new-born a distinct personality. Opening continued unimpeded by the World War. The hundredth store opened in Mansfield in July 1921. By that date Woolworth stretched the length and breadth of England and Ireland. There was even a store in St Helier, Jersey in the Channel Islands.

 

The F. W. Woolworth Threepenny and Sixpenny Stores in King Street, St Helier, Jersey, Channel Islands, which opened on 9th April 1921 and, after 78 years of exemplary service and exceptional profits, closed acrimoniously when the parent company collapsed into Administration at Christmas 2008

Fred led from the front, spending much of his time in-store. Like his cousin, he got involved with suppliers and reviewed contractual matters personally. He rarely missed a Board Meeting. But he was also cautious and risk-averse.

Success brought financial rewards and high society status. To the media he was the "Mr Woolworth". Indeed when his daughter Pauline married at St Paul's Cathedral, British Pathé captured the event in one of its first cinema newsreels.

 

But success came at a price to Fred's health. In the summer of 1922 he suffered a stroke while visiting his mother who had been taken ill in the USA. Despite rushing back to Britain, for the first time in fifteen years he was unable to attend Board Meetings. He rallied briefly in December, chairing the post-Christmas review, before suffering a fatal stroke on 27 January 1923. The stores were instructed to close. Most of the staff knew their MD personally and were so shocked that they needed time to absorb the news.

To everyone's relief the American parent company picked an insider to be Fred's successor. William Stephenson was a popular choice. He was the sole British member of the founding team. The Yorkshireman had made a name for himself both for his kindly manner and his sharp commerciality and instinct. Stores knew him as both friendly and demanding and considered him firm but fair. Buyers and fellow Directors respected Stephenson and understood exactly why the Founder had sought him out to join the team.

Stephenson had privately harboured concerns that his boss had become too conservative as the company grew. As the formula had taken hold it had generated such large profits that Fred Woolworth had been unwilling to make changes to the ranges or the store environment. The new MD knew the store must evolve to stay on top, and would need to take risks to achieve its full potential. Under his leadership the pace of openings accelerated rapidly helping profits to rocket. When he retired after the Second World War, there were 770 stores and Woolworth had become Britain's most successful retailer, with shares riding high on the stock market. He told well-wishers at his retirement party that he had been lucky. Fred Woolworth had provided a solid foundation to build on.

 

From the book "<W> Twenty Years of Progress 1909-1928" which was issued as a memento for Woolworths colleagues and investors, the graphic shows the accelerating pace of growth in the 1920s.  It also shows the flagship first store before and after relocation.

 

The key changes that Stephenson introduced in the 1920s were:

  • a switch to open freehold rather than rented stores
  • larger premises for the original branches
  • 336 new stores added, compared to 97 in the 1910s
  • a fashionable new headquarters in Mayfair, London
  • new ranges, including gramophone records

 

During the same decade two new Woolworth companies opened their doors:

 

Both still trade today.

 

The F. W. Woolworth 3D and 6D Stores in Spiceal Street (Bull Ring) Birmingham, a flagship store for more than 60 years. Today Selfridges of Birmingham stands on this site.An envelope from the Canadian Woolworths (F. W. Woolworth Co. Limited) can be dated to 1921 because that is when the British company had exactly 100 stores.

Woolworth Canada ignored its American parent but celebrated its British cousins in the 1920s!