The first five cent table

In the Winter of 1877 to 1878 times in America were hard. The country was still recovering from the ravages of civil war, with weak infrastructure and much damage to repair. The population was expanding rapidly, but disposable income per head was falling. The shop where Frank Woolworth worked, Moore and Smith, was really feeling the pinch with a surplus of $35,000 of unsold stock.

Frank had spent a time away from Moores - first taking a job with A.A. Bushnell, a rival store, then recovering from illness on the farm. William Moore had missed him and his spectacular displays and had hired him back on the princely salary of $10 a week. But as times got hard he demanded that staff members accept pay cuts, asking Frank to settle for $8 a week. The reduction came at a bad time, as the Woolworths were expecting their first child.

As fate would have it an old friend came calling at Moore and Smith. Mr. Golding had once been Head Clerk at Bushnells across Public Square, Watertown, before leaving with a co-worker, Ed. W. Barrett, to set up a "99 cent store" in Port Huron, Michigan. Frank Woolworth was keen to hear news of the venture, and listened in on the conversation.

William Moore admitted that times were hard, at which Golding told him what they had done to transform their luck in Port Huron. They had come across a salesman by the name of Joseph C. Bennett, who had come up with a novel way of clearing up surplus production of handkerchieves from one of the factories he traded with. He had put the job-lot on sale at 5 cents a piece, rather than the normal 20 cents. To his surprise, the handkerchieves sold out, as did all of his other items !

William Moore was unconvinced but was interested enough to ask for the supplier's name, which was Spelman Brothers. He also asked how the goods were displayed, Golding explained that they were placed on a table at the back with a simple sign reading "Nothing on this table over 5¢". What did Golding mean by other items? Golding went on to explain that they had tried out Bennett's idea in their own store, buying in some "Yankee Notions" like pots and pans, napkins and combs that could sell for a good margin at 5 cents, topping up the display with poor sellers from their existing range. If the item was dusty on the shelf, it wasn't selling and needed to be cleared. Golding and Barrett had cleared lots of stock and had one of their best days in ages, releasing money for wages and bills. Spelmans, said Golding, now stocked a big range of 5 cent lines. Moore agreed to think about it, and later discussed it with Frank Woolworth, who was very enthusiastic. Against the backdrop of difficult times, the two men agreed to take the plunge.

The next time Moore was in New York in August 1878, he ordered $100.00 worth of 5 cent lines.

Woolworth was put in charge of a small table, which was to be displayed during the Watertown County Fair.

The goods arrived with a week to spare. Woolworth prepared a smart display, as Fred Kirby watched on. To supplement the special buys, Moore had extracted slow moving lines from around the store. To complete the display Frank prepared a neat cardboard sign, which he suspended from the ceiling. It read "Any article on this display 5¢".

The feature consisted of two old sewing tables butted together in the central aisle. Each measured about 1.75m by 0.6m. Woolworth had draped it in red cambric. The products included:

■ steel pens
■ crochet needles
■ button hooks
■ glassware

■ watch keys
■ combs
■ book straps
■ handkerchieves

■ safety pins
■ collar buttons
■ pencils
■ harmonicas

■ baby bibs
■ tin pans
■ wash basins/dippers
■ writing paper

■ turkey-red napkins
■ thimbles
■ soap
■ envelopes

The 5 cent table was an instant hit, with word getting round town that the Moore and Smith store had exceptional bargains. This generated a steady stream of customers throughout the day. The assistants were rushed off their feet. By closing time the display was almost empty. Moore sent Frank running to the Western Union office above the store to place a repeat order from Spelmans. Woolworth later recalled:

"The goods vanished like snow in April". "Immediately things began to happen. Like magic, the goods on the '5¢ counter' faded away and money flowed into the cash drawer."

After a while sales started to dwindle. Moore assumed that 5 cent merchandise worked better when offered from time to time, but Frank had another assessment. He observed that Spelman had filled the store's repeat orders with items of lesser quality. Over time the poor items had clogged the display. The proposed Woolworth remedy was to clear the remnants in the wholesale orders that the store had started to supply to other local merchants.

Sales rallied, but Moore harboured reservations about carrying a regular range of five cent lines. He feared that the bargain table might undermine the store's upmarket image. Frank understood the quandary and wondered whether a store could prosper just on the sale of five cent goods. He asked Moore for advice on how much stock would be needed to fit out a five-cent store. Moore believed that the idea had potential and estimated that $300 would be needed for stock, fixtures and advance rent.

Frank was undaunted by Moore's figure. He set his heart on giving the idea a go. He put the proposal to members of his family, hoping that one of the affluent relatives on his mother's side would bankroll a store opening. His progress is described in our next exhibit.

Shortcuts to other exhibits in our 1800s Gallery

1800s Overview: the story begins
Formative years of the Woolworth Brothers
Birthplace - Augsbury & Moore, Watertown, NY
The first five cent table
Experimental five cent store in Utica (a flop)
First successful store - Lancaster PA 1879
The 'friendly rivals' buying syndicate
Frank Woolworth's early buying trips to Europe