Frank W. Woolworth |
In 1868, sixteen-year-old Frank W. Woolworth, son of a humble potato farmer, set forth to make his fortune in the world of business. For several years, though, Frank was forced back behind the plow. With every heft of the hoe, Frank's determination to escape intensified.
Eventually, Frank worked for William Moore of Moore & Smith's Drygoods in Watertown N.Y. where he learned much about the retail business. When Frank had an idea to open a nickel store, it was Moore who came through for Woolworth. Moore told Frank that if he could find a good location, he would give him a note to finance his own store.
As New Year's Day 1879, approached, great fortunes were being made across America. P. T Barnum had his circus, Rockefeller had Standard Oil, Hartford had A&P, and Frank Woolworth would have his five cent store. In February, Frank bid his loved ones good-bye, then trudged through the snow to the train depot. A few five-cent stores had already sprouted up in large cities such as Syracuse, and he planned to check them out, first-hand, to assess the lay of the retail land. Then, he vowed, he would find the perfect site for "Woolworth's Great Five-Cent Store."
Woolworth, Utica, N.Y. |
The next few weeks Frank scouted out several different cities between Watertown and Rome, New York, looking for the ideal site for his first store. The results there were disappointing, so, on a hunch, he took the train into Utica.
Fortunately, Utica was hopping when he arrived, which energized his spirits. He watched the flow of traffic, both pedestrian and carriage, his mind reeling with possibilities. Utica was full of hard-working factory workers, all potential customers. The five-cent craze had somehow missed Utica, so he would be operating on virgin sales ground. A storefront on the corner of Bleeker and Genesee, though not a large space, would be ample for his needs.
The landlords were bankers who drove a hard bargain. They wanted thirty dollars per month for rent, a year's lease, and the first month paid in advance-with cash. Combining his charm and tenacity, Frank talked the landlords into deleting the "year lease" clause, and into waiting until the end of the month for the first rent installment. When asked to explain the nature of his business, Frank hedged. "Oh, notions and general merchandise," he replied lightly. He feared that, being bankers, they might smell a cheap-goods fad with no hope of making a long-term profit.
Ladies hair ribbons and accessories were best-sellers at the Utica store. |
Twenty-seven-year-old Frank Woolworth had achieved his preliminary goals. He had the place. He had the means. He had the energy. All he had to do was wire William Moore back in Watertown and tell him which stock to set aside for transfer to Utica. Still he hesitated, realizing the ramifications of such an action. Years later, Frank recalled this moment of truth in one of his general letters to his staff. He wrote: "That telegram seemed to mean a definite casting of the die. I kept it in my pocket and walked past the telegraph office many times before summoning courage to send it.
Faith in himself finally superseded his doubts, and he did send that wire. Consequently, the first merchandise bill from William Moore turned out to be much more than Frank had expected: $315.41. That left only $34.59 to purchase wood for counters, a cash box for the money, board in a rooming house, and money for cleaning supplies. The leased space was rather dilapidated, full of dust and grime, and needed to be thoroughly revamped.
Woolworth's Record Department 1958. |
Frank shrewdly arranged for two thousand flyers to be distributed by a young boy. The handbills read, in part: "Grand Opening-Eight O'Clock on the evening of Saturday, February 22, 1879." All was going well, but Frank had underestimated the amount of work required to get his business organized. Years later, he reported to say: "On Friday evening I had the goods all in the store, but everything was in a great litter, with loose paper scattered about on the floor and the goods in a general mix up on the counters and shelves. While I was working in this muss, about nine o'clock, somebody knocked at the door. . . " An older woman, who'd seen his flyer, wanted to purchase a five-cent fire shovel. Hence, Frank made his first official sale on Friday night, and then locked the door behind her. The store opened, as scheduled, the next evening at eight o'clock. He did not have a rush of customers, but business was steady. At midnight, when he counted his receipts, he'd found he had made an even nine dollars.
During Frank Woolworth's opening day in Utica he sold toy dustpans, biscuit cutters, apple corers, ribbons, and cheap necklaces. Monday's sales totaled $50.20. By week's end he'd made $244.44. Within three weeks he was able to pay back William Moore, satisfy his landlord, and pay his staff. By April 1879, his business was booming. Then, unexpectedly, the bottom dropped out of the market.
There were only so many items Frank could sell for a nickel, and after the patrons had seen them all, the store's novelty waned. He tried to boost business by distributing more handbills, but by mid-May Woolworth knew he had to close down voluntarily, or his debtors would do it for him.
Woolworth closed his doors in Utica in May 1879, but it was not the last the Mohawk Valley would see of him. The successor to the Genesee Street store would open in 1888 ( under the banner "Woolworth & Peck" ). With only thirty dollars in his pocket, Frank Woolworth left Utica for Lancaster Pennsylvania where the first permanent five-and-ten-cent store was about to be born.