Bremen • Berlin • Dusseldorf
Bochum • Wiesbaden • Barmen
Dortmund • Hamborn • Duisburg
Woolworth’s in Germany continued to grow and prosper throughout the late 1920s and into the early 1930s. American F. W. Woolworth Co. was more than pleased with the sales figures; the executives overseas were becoming quite wealthy, and scores of German employees and suppliers were enjoying a steady, generous income. Woolworth’s was extremely popular during this period, basking in prosperity along with several German-owned variety store chains, including Epa, Ehape, and Wohlert.
Then the bottom started to drop out of the market. Within a few years, this trouble would explode into another full-scale world war. And just like its English Woolworth’s counterparts, German Woolworth’s employees and stores would suffer immensely.
A privately printed company document, Milestones of Woolworth, prepared by John P. Nichols in 1949, offers great insight on the effects of World War II on F. W. Woolworth’s in Europe.
According to Nichols, F. W. Woolworth Co., G.m.b.H. operated seventy-seven successful stores in 1932. That same year, a government policy he refers to as “the Bruening decree,” was instituted in Germany. It stated that all of Germany’s variety store chains, including F. W. Woolworth, were prohibited from opening any additional fixed-price stores. The ever-resourceful Woolworth’s administrators managed to sidestep this policy, arguing that they already had four new sites under construction. They were begrudgingly granted permission to open these four stores, along with several more.
As Adolf Hitler started to gain power in Germany and other parts of Europe, the plight of the “25-&-50-phennigs,” along with their German executives, suppliers, and employees, increased in leaps and bounds. Hitler was a rabid opponent of fixed-price chain stores, especially those owned by Americans. He viewed chain stores as a serious threat to the commercial prosperity of his homeland. “Among others courted by the politically ambitious Hitler,” wrote Nichols, “were the retailers of the Republic many of whom, at this stage, were nearly beside themselves with worry over the manifest popularity and rapid growth of the one-price chains, Woolworth, Epa, Ehape and Wohlwert”.
By January 1, 1933, Woolworth’s Germany had moved their headquarters to Bellevuestrasse II, Berlin W 9. The director, Mr. Richard Strongman, had resigned and passed the leadership over to Ivan W. Keffer. Keffer struggled on, doing his best to continue under the onslaught of increasingly dictatorial government controls, and of course, among the horrific consequences of anti-Semitism caused by the Nazi Party. It is also important to note that Hitler was zealously guarding all outgoing profits by then, and trying to keep all the profits from Woolworths and other retail chains, right there in Germany. In 1938 alone, the United States parent company lost Rm 5,527,217 in unrealized dividends and undistributed surplus earnings.
F. W. Woolworth Co. of New York, which owned 97% share in German Woolworth’s, quickly voted to set aside a $6 million reserve against potential war losses. In September 1939, as the Third Reich marched on Poland, Woolworth’s German manager, Ivan Keffer, was recalled to Canada by the American parent company. A limited power of attorney for the Germany holdings was given to Heinrich F. Albert and Dr. D. F. Albert, legal counsel to German Woolworth’s.
After almost six years of war, an unconditional surrender agreement was signed by Germany’s Reich on May 7, 1945. By this time, a total of seventy of the eighty-eight prewar Woolworth stores operating in Germany had been either completely destroyed or seriously damaged by bombing and fire. It took many years for F. W. Woolworth Co., G.m.b.H. to recover. The remaining employees and managers, along with a new ambitious group of employees, all banded together to put German Woolworth’s back together again. They were led in this effort by Rudolf Jahn, a German who had been trained in the Woolworth organization in America and had been with the German division since its inception.
During the war, Jahn had been ordered by the Nazi government to act as custodian of German Woolworth’s. According to Milestones of Woolworth, Jahn continued this post under the control of the Allied military government. In time, the United States Department of State issued a directive ordering the release from American military government control of all properties in the American-German Zone and in the U.S. Sector in Berlin. Once this was granted, Jahn was totally free to get German Woolworth’s on track.
By the end of 1946, forty-four Woolworths were back in business. But this was a very different Germany than the one Frank Woolworth had visited in 1890. The new Germany was restructured and divided, with Woolworth’s restricted to only West German localities. By 1954, they had fifty modern-looking stores, and by the time American Woolworth celebrated its 100th anniversary in 1979, F. W. Woolworth Germany celebrated its 53rd, with 199 stores and sales exceeding $600 million (U.S.).
The German stores continued to prosper as many of the original “25-&-50 phennig” signs from the 1920s and early thirties were replaced with simple white signs, on which the word “Woolworth” was emblazoned in red letters.
Along the way, German Woolworth’s Yankee origins became clouded, and for many post-War patrons of the German Woolworth’s, the variety stores were an innately German invention. Several German immigrants who arrived in America after 1960 said they were shocked to see F. W. Woolworth signs when they walked the streets of New York. They honestly believed that Woolworth’s belonged exclusively to Germany. This was a similar response shared by United Kingdom patrons, who thought “Wooleys” was purely British in origin.
As with all of Woolworth’s divisions, Germany had its own sales and stock preferences. Sports equipment, bicycles, leisure apparel, and home improvement lines were the biggest sellers. The larger stores even sold ladies fur coats, in many styles and price ranges. And, of course, in the Woolworth’s equipped with cafeterias, the German patrons enjoyed luncheon repasts of bratwurst and fresh-baked rolls.
On September 22, 1998, Venator (formerly F. W. Woolworth Co.) announced that their seventy-two-year-old German division had been sold for $552 million. Before the end of the year, Deutsche Woolworth G.m.b.H would be in the capable hands of its own German management and Elektra Fleming, a London-based private equity group.
At the time of its sale, the division had 357 stores and 13,000 employees, and was rated one of the largest retailers in all of Germany. Although the division had experienced some losses over a period of years, the New York Post reported that it had shown a healthy profit of $16 million on sales of $1.3 million in 1997. Projections indicate that Deutsche Woolworth G.m.b.H will continue prospering, under its new management, for many more years.
In terms of the history of Woolworth’s itself, the German division holds special and marked significance. By selling off its interest in the German stores, the Venator Group also sold off the last of its Red-Fronts in the world.
TIME CAPSULE MEMORY FROM GERMANY
“Bratwurst and Beer at Woolworth’s”
Some of the larger Woolworth’s stores in Germany had counters where we could enjoy lunch. I always found it amazing, and convenient, that a family could shop for necessities like socks and yarn, and then browse over to the food area for refreshment. In Germany, we did not eat out “franks” on a bun like the Americans did. We had a plate with say, a piece of bratwurst, and beside it a warm roll and a bit of mustard. We would dip the meat into the mustard as we ate. Of course, there was always good German beer to finish off the meal. When I first came to America, I was living in New York, and one of the first things I noticed was a big Woolworth’s sign. I was quite shocked, as I had always believed that Woolworth’s was a German invention!
—Werner Reschmeler, Rumson, N.J.
Woolworth’s In Cuba
“The republic of Cuba has taken Woolworth’s to its warm and friendly Latin heart.”
—From company souvenir booklet dated 1954, several years before Castro’s hostile takeover of F. W. Woolworth, Cuba
By the early 1920s, the F. W
. Woolworth Co. was basking in great financial success. With his passing in 1919, the chief had left behind a multimillion-dollar legacy—the largest retail chain in America. Just across the United States’ border, the Canadian division was profiting. Overseas, F. W. Woolworth & Co., Ltd. Of England was growing in leaps and bounds, and the Woolworth product warehouses in Germany and France were providing a steady stream of imports for eager American buyers.
The late Frank Woolworth’s massive desk in the Empire Room of the Woolworth Building was currently being occupied by his hand-picked successor, president Hubert Parson. Charles Woolworth was installed as chairman of the board, and a talented team of managers were making sure that all the Red-Fronts were in tip-top shape. While everyone mourned the passing of their leader, Frank Woolworth (and other revered Woolworth men such as Seymour Knox, William Moore, Carson Peck, and Charles Griswold), the company’s executives knew they had to carry on. World War I was finally over, and it was a fortuitous period to expand the business. This time around, company leaders looked toward one of the most notorious and prosperous resort islands in the world.
The year was 1923 and the Republic of Cuba was thriving. Thousands of wayfarers were heading to that small isle, ninety miles off the Florida coast, to enjoy the beautiful beaches, resort hotels, and legendary night life. Several American-owned businesses were already making millions on sugar and cigar plantations. Locals were cashing in on souvenir straw hats and voodoo charms. The famous and infamous, rich and poor, Samaritans and mercenaries, all thronged Cuba’s hot spots twenty-four hours a day, with only a short respite for afternoon siesta. The island was a touristos’ paradise.
One of its touristos happened to be Frank Woolworth’s nephew, Roy Creighton, then supervisor of merchandise for the company. Upon returning from his Latin pleasure trip, Creighton presented a proposal to the board of directors on April 9, 1923. He was convinced that Havana was ripe for a Woolworth’s five-and-ten, and suggested they expand into Cuba immediately.
Sensing an ideal business opportunity, Hubert Parson pressed Creighton for details. Creighton explained that he’d already scouted out several sites for the premier store. The ideal spot seemed to be 51–57 San Rafael Street in Havana. A new building was being erected there, on the busy corner of Amistad. The rental price was $24,000 (U.S.) per year plus taxes and insurance, and the landlord was open to a fifteen-year lease. After some deliberation, the board approved the proposal. Parson sent Roy Creighton back to Cuba to set up shop, this time with official power of attorney to enable him to conduct the necessary paperwork.
Hola, Habana!
The first F. W. Woolworth’s on San Rafael Street was called “La Casa de 5+10 Centavos.” It opened, with great fanfare, on Saturday, December 20, 1924. Its red-and-gold masthead blazed electric in the shadow of Morro Castle.
From day one, the American “centavos” was a huge hit. Expansion was swift, and by the end of 1928, there were eight such Woolworth’s units on the Island. Four stores were located in Havana, with the remaining “centavos” dotting Matanzas, Santiago, Camaguey, and Cienfuegos. (Eventually, the original San Rafael store moved to the crossroads of Galiano Street, nicknamed “Sin Corner” because of the brisk prostitution trade.) The locals referred to F. W. Woolworth’s as the “Ten Cent” or the “Centavo”.
Unlike F. W. Woolworth, Co., Ltd. in the British Isles, which shared ownership with the parent company, the Cuban stores were owned 100% outright by F. W. Woolworth Co. of New York. The profits continued to roll in for decades, holding steady even through the Great Depression. The 1930s brought the American fascination with movie stars, hot dogs, and yo-yos right into Cuba’s backyard. During the 1940s, piped-in tunes of the Andrew Sisters and Bing Crosby shared store air time with Latin mambo music. By the late 1950s, total annual sales in its eight Cuban Red-Fronts had topped $10 million (U.S.).
The late forties and fifties represented a zenith period for the small Latin subsidiary. Hula hoops and costume jewelry, radios and sewing notions, frying pans and Tangee lipsticks—were all grabbed up by bargain-hungry patrons. The candy and food service areas were always busy, and for good reason. They offered clean, modern air-conditioned dining facilities and convenient take-out service. Lunch counter ice cream was a favorite treat of local students returning from hot school-rooms. In fact, when Woolworth’s first introduced ice cream into its Havana stores, it caused a sensation among young and old alike. At first, the company had to import this delicacy, not a simple task in the pre-electric freezer days of the 1920s. The problem was resolved when Cuba started its own booming ice cream industry, inspired by the American “Ten Cent.” Woolworth’s then had its own island supplier to help meet the steady demand for vanilla cones and cherry-topped sundaes.
This large Havana “centavos” store, c. 1955, featured rows of circular lunch counters staffed by uniformed counter girls.
The company’s 1954 promotional booklet, Woolworth’s First 75 Years, proudly extolled its Latin stores, stating: “The republic of Cuba has taken Woolworth’s to its warm and friendly Latin heart.”
Unfortunately, by 1958, not every heart in Cuba was friendly.
Woolworth’s Under Siege: Castro’s Takeover
The spring of 1957 was a time for celebration at the New York headquarters of F. W. Woolworth Company. Its recently remodeled Havana store was showing record sales. Preliminary plans were underway to expand further, perhaps even to branch out to other Cuban resort towns. Unfortunately, just as the Cuban Woolworth’s was basking in its greatest success, its eight “centavo” sites suffered a menacing and irreversible fate. In 1958, Fidel Castro began what he called a “total war” against the Batista government. Seemingly overnight, the country changed from a popular resort to a confused center of turbulent uprisings. By 1959, Cuban President Batista had fled, seeking refuge in the Dominican Republic. Fidel Castro was left behind, a loose cannon, to take over as premier. Castro didn’t waste any time capitalizing on his quarry. Relying on the strength and loyalty of armed revolutionaries, he started to expropriate all the U.S.-owned sugar mills. By March 1960, he had “nationalized” every large estate in Cuba, native or foreign-owned. One by one, he forcibly procured all nonsympathetic foreign businesses. Of course, the American-owned five-and-tens were directly in the line of fire. The United States government, and businesses like F. W. Woolworth Co., vehemently protested the continued Cuban expropriations, but to no avail. In 1961, America broke off all diplomatic and trade trade relations with Cuba.
Later that same year, Cuban-exiled rebels (covertly organized and funded by the United States) attempted an unsuccessful invasion of Cuba at the Bay of Pigs, a fiasco which was followed by the frightening Cuban Missile Crisis in 1962. Fortunately, nuclear war was averted, but Cuba officially became a Communist regime.
It is not clear what exactly was happening at the American-owned Woolworth’s stores in Cuba during this period. During his address to the American Newcomen society in 1960, Woolworth President Robert C. Kirkwood, discussed the company’s foreign holdings at length, including the success of its newest Latin operations in Mexico—but not one word was uttered about Cuba.
Several Cuban expatriots and former American Woolworth’s employees, however, clearly remember that time in history, providing a partial picture. Apparently, Fidel Castro sent armed revolutionary troops into the eight Woolworth’s stores sometime between 1958 and 1960, to “relieve” the managers of their store keys. The American staff was then ordered to leave the island immediately (in some cases, before midnight). Some employees left with only the clothes on their backs. After the nationalization of the stores, the names of the F. W. Woolworth “Centavos” were changed to read “Variedades.” When referring to a particular store, customers would include the name of the street; for example, Variedades de Galiano.
TIME CAPSULE MEMORY
“Woolworth Managers at Gunpoint”
One of my Woolworth’s colleagues was managing a big Havana store during the Castro ta
keover. He told me that one day, his Cuban “floorwalker girl,” suddenly headed toward him, forcibly flanked on either side by two muscular revolutionaries sporting crossover chest bandoleers and enough gunpowder to kill everyone within four miles. Without preamble, they pointed their guns at the store manager and demanded the keys to his store. In menacing tones, they informed my fellow American that he was to go home, gather his family and get the hell out of Cuba. The floorwalker was forced to translate, but the message was clear regardless. It was time to say adios, Cuba!
—Recalled by a former Woolworth’s district manager
Castro’s hostile takeover was not entirely fortuitous. The one thing that had sustained the Cuban Woolworth’s was the steady influx of thousands upon thousands of items imported from America. With the trade embargo firmly in place, and the F. W. Woolworth Company’s loss of its monetary stake in the Cuban stores, these shipments were terminated. The stores were never quite the same.
The present status of these eight Variedades is unclear. It is presumed that F. W. Woolworth Company has an active claim on all of their nationalized Cuban properties, just like they had in Germany during Hitler’s regime. If Castro, or his successor, ever liberates the holdings, the company will no doubt take appropriate action. In the meantime, the five-and-tens in Cuba can be remembered as fondly as any other Woolworth’s chain. Forty years of mercantile history are not easily obliterated, and many Cubans can still remember their earliest visits to the Havana or Santiago Tencent, where colorful dolls, tin soldiers, cars and crayons were the dreams of any child. Some say they can still vividly recall the taste of that delicious American concoction, the frozen Milkyway, or the visions of mouth-watering piles of candies piled higher than their heads. They recapture stolen moments in the air-conditioned Tencent during Cuba’s summer months, and trying out that odd but fun, device called the hula-hoop. All these memories, and countless more, remain part of the Woolworth’s legacy in Cuba.
Remembering Woolworth’s Page 16