Why woolworths failed

In the s, an average of 15 stores were closed each year to fund the renovation of more modern outlets but, at the start of the s, Woolworths still had 1, shops and was beginning to expand into out-of-town locations. In , the US Woolies, now owned by a rival American retailer, announced it was closing its remaining FW Woolworth stores, but its British arm remained in rude health.

Since then, it has struggled to fend for itself, battling stock shortages, facing an aborted bid attempt by retail billionaire Sir Philip Green, issuing profit warnings and failing to persuade a new generation of shoppers to visit its increasingly unfashionable stores.

The enthusiasm which greeted its arrival in the UK has been replaced by indifference from consumers and, aside from the pick and mix confectionery counter, it is no longer clear what the store is for. Unlike the shoe polish, tea towels and cheap china plates it stocks, Woolies has outlived its usefulness and many of its products can be bought more cheaply elsewhere. We misspelt Cobham. This has been corrected. This article is more than 12 years old. The cheap and cheerful chain that became an amazingly successful US import has now outlived its usefulness.

Is this the secret to High Street success? Poundworld to disappear from High Street. Image source, PA. View comments. Related Topics. Many believe that this set off a chain of events which eventually led to the collapse. With increasing rent, Woolworths were left in a position where they had landlords which made it near impossible to negotiate better lease terms.

Also, when life got tough Woolworths simply had no fixed assets. Over the next few years Woolworths refreshed its stores and widened its product range to suit the modern and, with the popularity of the internet and sites such as Amazon, the informed consumer who demanded a wide choice and quality but at the right price.

Another popular product range which took a hit was CD, DVD and video game sales due to the consumers switching over to download sites such as ITunes and opting to use more convenient on demand services such as Sky and Netflix, which saw a burst in sales and revenue due to faster broadband speeds.

The seeds were well and truly planted, as the market and bank stocks started crashing, led by GMAC who decided that there were too many uncertainties.