Ever been inside the Woolworth Building at 233 Broadway in lower Manhattan? During my early days reporting on the retail industry, I went there often to meet with executives of what at the time was one of the most diversified international retailers, though not one of the most successful. Today, all that remains of that empire are memories, folklore and just one enterprise, Foot Locker.
Today’s nostalgia is prompted by reports the top 30 floors of the 57-story, Cass Gilbert-designed landmark building have been bought, to be turned into high-priced condominiums (http://www.nytimes.com/2012/08/08/realestate/top-floors-of-woolworth-building-to-be-remade-as-luxury-apartments.html?_r=1&hpw). How ironic these multi-million dollar residences will sit atop a building paid for from the proceeds of a nickel and dime store chain. Frank W. Woolworth paid for his edifice in cash, $13.5 million, what today would be the equivalent of nearly $300 million.
The neo-Gothic structure, tallest in the world when it opened in 1913, was never meant to be solely the province of the Woolworth Corporation. Its headquarters staff used just a few of the floors, 44, 45 and 46, as I faintly recall. Some of its divisions, including Kinney Shoe Corp. from which Foot Locker sprang, had offices elsewhere in Manhattan.
I first entered the Woolworth Building in late 1978, as part of research for a January 1979 feature on the company’s 100th anniversary. The building was nicknamed the “cathedral of commerce” the day it opened. Like the Gothic churches of Europe, the lobby’s vaulted ceilings, mosaics and stained glass made one feel insignificant. See for yourself: http://en.wikipedia.org/wiki/File:WTM3_PAT_M_IN_NYC_0021.jpg
It inspired awe. And wonder, not the wonder of reverence, but rather the wonder of consternation. How could any company that produced such magnificence sink to a level of mediocrity and even insignificance? How could its executives fail to recognize changes within the retail industry?
To be sure, the variety-store oriented Woolworth brain trust had diversified, investing in discount stores (Woolco), specialty stores (Susie’s Casuals, Anderson-Little, Richman Bros., Kinney), off-price stores (*J. Brannam), and international divisions (Canada, Mexico, Germany, Spain, Great Britain). Without going into an exhaustive explanation of what went wrong with each, the short story is they all underachieved. They were either closed down or sold off, save Foot Locker. (After shuttering the variety stores, Woolworth changed its name to Venator Group, then Foot Locker.)
Here’s one example that encapsulates the mentality of what went wrong. As they had for decades during the heyday of the five and dime store era, everyone took their 30-minute lunch break at 12 noon sharp. Executives and secretaries. It was impossible to reach anyone there by phone during that half hour. Nor was it possible to reach anyone after 4:30 pm., even if you were calling from the West Coast. They all went home.
Modern day retailing needs found no home at 233 Broadway. No doubt, the new homeowners atop the Woolworth tower can expect to have all their modern day housing needs fulfilled.
