Yankee Doodle Candy in the Nineteenth Century
Frank Woolworth maintained the popularity of his stores by always trying something new. This constant innovation helped him to stay ahead of the competition. His goal was to amaze customers at the sheer variety of items that their 5¢ or 10¢ could buy. In 1886 he decided to tackle the sweets market, believing that it should be possible to bring the prevailing price of the day of around 25¢ for a quarter pound (about 8p for 125 grams) down to just 5¢. This would bring 'candy', as the Americans call sweets, into the price range of ordinary people, rather than keeping it for rich people to buy in department stores. This is the story of how he did it.
Instead they told him he was bonkers! First, they believed, he would never be able to make it pay, as he would need to get the cost price down to just 12¢ a pound (about 10p a kilo) to achieve a reasonable margin. Second they thought it would be hard to manage, as they would need new fixtures and weighing scales, as well as new disciplines to handle the sweets hygienically. Frank thanked them for their feedback, and took no notice, pushing right ahead!
Undaunted Woolworth conducted market research. He asked passers-by whether they would buy candy for 5¢ a quarter, and if there were any barriers that would discourage them making a purchase. A number of people pointed out that others had offered cheap candy on market stalls, but had compromised on the manufacturing quality, leading to a much publicised spate of food-poisoning cases across the City. Most said that they would be pleased to buy candy if they were satisfied that it was 'hygienic'. They indicated that they were more likely to trust an established chain of shops like the Woolworth Five-and-Ten.
Just when Woolworth was losing hope of finding a candy supplier, he received a call from Mr. D. Arnould, the owner of a small factory with its own shop. He invited Frank to pay him a call. Woolworth found Arnould pleasant and approachable. The confectioner was unphased by the large quantity that the Five-and-Ten proprietor expected to sell, and believed that he could achieve the target price. Woolworth offered up-front payment, and to contribute towards any extra equipment that would be needed to handle the order.
The next day Arnould called at Woolworth's office. He had made a list of all the varieties of sweet that he could produce at a cost of 3¢ a quarter. While the list wasn't comprehensive, it included chocolate candy, boiled sweets and toffees, and was more than enough to win the order. The two men shook hands, and went on to make history! The opening order was for a trial run of 100 lbs (about 40 Kg) of sweets.
Like the tickets, the layout aped the displays at Macey's. Some delicatessen counters in supermarkets are a similar shape to this day, although the modern incarnations tend to be made of stainless steel or plastic rather than mahogany. Woolworth chose his prettiest clerks to serve on the sweet counter. They were issued with an extra large scoop and a ready-reckoner table with the price for every conceivable weight. The stores were instructed to give away any mis-shapen or unwrapped sweets as samples to tempt customers. When the counters were unveiled in Autumn 1886, they were an instant hit. Arnould worked night and day to meet the demand.
Word of Mr Arnould's good fortune soon reached other confectioners. As sales rocketed he became wealthy. Before long the sceptics fell into line, sending Frank Woolworth samples and requesting his business. The Founder drove a hard bargain, offering much lower margins than he paid to Arnould. Frank Woolworth always favoured those partners who gave him a break, remaining loyal and giving them first refusal for any new line. Over the next thirty three years the chain ordered 4,400,000 lb (1,973 tonnes) of sweets from Arnould.
For the next seventy-five years, both in North America and later in Britain, a favoured technique of promoting sales of weigh-out sweets was to assemble elaborate window displays. Sometimes these featured new lines, but more frequently they were dressed with candy for special events like Halloween, Valentine's Day or Thanksgiving. We are proud to be able to share photographs of some of the windows that graced Main Streets across the USA and Canada in the 1910s and 1920s. The century-old album contains a closely-guarded secret from the early days. Company rules dictated that each window had to be restocked every two days. The hard work was expected not to improve the display, but to make sure that the sweets were still in a good enough condition to sell after they had been on show!
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