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Dress rehearsal - Frank Woolworth's first 'Great Five Cent Store' at Utica
He asked his boss and mentor William Moore how much it would cost to set up a five cent store. Moore estimated $300 for premises, fixtures and stock. Frank was undaunted. As his father did not have any ready cash, he tried to persuade his wealthy uncle, Albon McBrier, to lend him the money. His request fell on deaf ears. McBrier thought that the idea was foolish and declared that he would sooner throw his money in the river. He advised Frank to stick with his $8.50 a week salary. Frank turned to his boss William Moore, asking if he would help.
Moore bought him a season ticket to tour nearby towns and find the right spot. Frank fancied Utica, about 500 miles (800km) north of New York City and 80 miles (133km) from Watertown. He looked at properties in its main shopping road, Genessee Street, but decided they were too expensive. Instead he chose a one-room shop 13 feet wide (4m) by 20 feet deep (6m), around the corner in the quieter Bleecker Street. The two landlords expected no less than $35 a month in rent, payable in advance.
To minimise his risk, Woolworth left his wife and daughter in Watertown and hired only temporary help to get started. Every expense was spared. Counters were improvised from upturned packing cases, draped with red cloth. A single kerosene (paraffin) lamp lit the store. The greatest extravagances were two signs. A red and gold sign on the salesfloor announced "Any article 5¢". The fascia sign above the door read "The Great Five Cent Store". The entrepreneur was keen to get going quickly. He took possession of the premises on Monday 17 and intended to open on Saturday 22 February 1879. To put the word out Frank splashed out $7.50 for 2,000 handbills which were delivered door-to-door in outlying districts.
"Very well", said Woolworth, "just step inside and I'll wrap it up for you". She was the first of many customers, a few more on Saturday night, hoards of people on the Monday. In later life the Five and Ten magnate wished he had asked the lady her name for his memoirs! But he did keep a note of his first range:
The table above shows the cost price per gross (144 products) which he had agreed with William Moore in Watertown. Surprisingly the margin varied widely between one product and another. The budding entrepreneur also bought in a selection of practical novelties, paying between $1.15 and $1.40 per thousand. For a few weeks after opening the store was very successful, but gradually trade started to decline. Many a businessman would have thought it was all over - a flash in the pan. But not Frank. He was still convinced about the idea, and that it was the location that was wrong. He believed that he needed a higher traffic spot, and that he should seek a town where shoppers were more thrifty. He served notice to the landlord and sold as much as much of his range as he could, banking enough money to settle his rent and repay William Moore, with enough left over to try again. As he closed the doors for the last time in Utica, after only two months' trade, Woolworth established some key principles for the future: ■ location is everything, finding the right spot is half of the battle
For the record, on 21 July 1888 a new F. W. Woolworth opened in Utica. Second time around the Founder had plumped for a prime position at 153 Genessee Street and had hired his friend and former Moore's co-worker Carson Peck to manage it. The results were so spectacular that in 1890 Peck was promoted to the new role of the General Manager of the whole Company, becoming Frank's first number two. The thriving store was sold to Sum Woolowrth and soon became one of the mainstays of his operation. It was destined to remain a prime Woolworth location for much of the twentieth century.
Shortcuts to other exhibits in our 1800s Gallery1800s Overview: the story begins
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Frank Woolworth was surprised by the interest generated by his five cent bargain table among the well-to-do clientelle at the Moore and Smith Dry Goods Store. The feature was only a small part of the overall offer. He became convinced that five cent merchandise could sustain a whole store.
Moore offered to lend Frank $300 of merchandise, if he could find the rent from his savings. Frank would need to spend his time off scouting for premises.
Ever the negotiator, the would-be-tenant persuaded the landlords, who were bankers by profession, that with no tenant they would get no rent for the month ahead. He showed them the amount that he was investing in stock and the items he planned to sell. They were impressed and agreed to give him immediate access to get set-up and that the monthly rental would be paid in arrears. Frank raced back to Watertown to finalise his order for stock and to plan the opening.
