Woolworth's has dragged down the bottom line. Woolworth's eliminated its pet department and beefed up cosmetics and housewares. Famous brands, such as Pyrex and Rubbermaid, got prominent display on the shelves. After taking a hard look at the long-term viability of this business, we have determined that as American consumers turn to different 'large box' mass merchandise and specialty retailing formats to meet their shopping needs, the marketplace simply could not support Woolworth's form of general merchandise business. Indeed, a whole host of businesses nibbled away at Woolworth's franchise as general merchant to the masses over the last decade or so.
Drugstores sell crayons and pool toys.
Supermarkets stock lawn chairs and socks. The ubiquitous dollar stores and small variety stores, which rely on liquidations and closeouts to fill their shelves, scraped shoppers off the bottom of Woolworth's customer mix. At the same time, the corporation had little cause to worry. Because the athletic shoe division was running up profits big time. A Woolworth's counter became a part of U.S. history in 1960, when four black college students sat on the stools in Woolworth's Greensboro, N.C., store.