Woolco
| File:Woolco logo.svg | |
| Company type | Subsidiary |
|---|---|
| Industry | Discount department store |
| Founded | 1962 (Columbus, Ohio, United States) |
| Defunct | 1983 (United States) 1986 (United Kingdom) 1994 (Canada) |
| Fate | United States Liquidation United Kingdom Sold to Gateway Canada Majority of outlets acquired by Walmart Canada |
| Successor | Woolworth/Asda (UK only) Walmart Canada (Canada only) |
| Headquarters | Columbus, Ohio, United States |
| Products | Clothing, footwear, bedding, furniture, jewelry, beauty products, electronics, toys, housewares |
| Parent | F. W. Woolworth Company |
Woolco was a discount retail chain originating in the United States, established in 1962 in Columbus, Ohio by the F. W. Woolworth Company. Differentiating itself from the classic Woolworth five-and-dime stores, Woolco operated as a comprehensive discount department store. At its height, the brand maintained hundreds of locations across the US, Canada, and the UK. The American outlets ceased operations in 1983; Canadian stores remained until 1994 when they were sold to Walmart during Walmart's entry into the Canadian market. In the UK, Woolco stores were divested by Kingfisher plc to Gateway and subsequently to Asda.
Establishment
Amidst suburban growth, Woolworth initiated Woolco to penetrate the discount department store sector without disrupting its traditional variety store model. The inaugural location debuted in Columbus on June 6, 1962. By 1966, the chain had expanded to 18 US locations and nine Canadian sites, with ambitions to open 30 new stores annually. This rapid growth culminated in over 300 stores throughout North America by the mid-1970s. Some existing Woolworth stores were converted into Woolco outlets.
During the mid-1960s, the company experimented with a budget brand named Worth Mart but eventually streamlined operations under the Woolco banner by the following decade. Woolco marketed itself as a "promotional department store," featuring broader product selections and enhanced services compared to typical Woolworth shops.
Numerous outlets incorporated Red Grille cafeterias offering popcorn and milkshakes to enhance the shopping experience.
Expansion into the UK market occurred during this timeframe; for instance, a substantial store opened in Bournemouth in 1968 encompassing 114,000 square feet of retail area alongside parking facilities for 1,250 vehicles.
By November 1971, Woolco operated 47 stores in Canada with simultaneous launches including one at Marlborough Mall.
Decline
Standard Woolco locations spanned over , which was notably large for discount retailers at that time. It was common practice for various departments such as shoes and jewelry to be leased out to independent operators.
In response to financial pressures during the late 1970s, Woolworth implemented measures to reduce costs within Woolco by downsizing floor space in larger outlets, phasing out most leased departments, and entering smaller markets with stores as compact as . Surplus space within some larger stores was repurposed for J. Brannam, a subsidiary owned by Woolworth.
J. Brannam ("Just Brand Names") was an off-price apparel retailer launched in 1979 with initial locations in Oklahoma City and Dallas. The chain expanded rapidly across states from Arizona to North Carolina by 1982 but faced mounting competition that led to closure of all J. Brannam stores by December 1985.
By 1979, Woolworth consolidated its Woolco discount division with its variety store operations and initiated closures of underperforming locations, including several in Chicago.
Closure
On September 24, 1982, Woolco declared it would be closing all its stores across the United States. The final U.S. Woolco location opened shortly after, on September 29, 1982, in Luling, Louisiana—just five days following the closure announcement. By January 1983, every one of the 336 Woolco outlets in the U.S. had ceased operations. This shutdown involved liquidating nearly $1 billion worth of merchandise, representing the most extensive retail liquidation in the U.S. at that time. Meanwhile, Woolco's Canadian division, comprising around 120 stores, continued to function.
In the United Kingdom, Woolco stores were separated from British Woolworths in 1982. Four years later, in 1986, Woolworths sold these outlets to Gateway, which then sold them to Asda in 1988. Kingfisher plc attempted to revive the Woolco concept with the introduction of Big W in 1999; however, this initiative was discontinued by 2004 after Woolworths Group PLC became independent and sold some Big W locations to Asda and Tesco.
Within Canada, by 1990, twenty-six Woolworth stores had been transformed into Woolco locations. On January 14, 1994, facing a $1.7 billion debt incurred from international expansion efforts, Woolworth Corporation divested most of its Canadian Woolco stores to Walmart. Walmart opted not to acquire unionized or downtown stores; some former Woolco sites were converted into Zellers outlets, which eventually partially transitioned into Target Canada stores before Target's bankruptcy in 2015.
Canada
Woolco maintained a more significant market share in Canada compared to its U.S. presence, operating approximately 160 stores at the time of its closure. The brand originated as part of F. W. Woolworth’s Canadian operations dating back to 1904 and persisted for eleven years after the American closures until it was acquired by Walmart Canada. Canadian Woolco locations were well-known for promotional campaigns such as monthly "$1.44 Days," competing directly with retailers like Woodward's and Eaton's. Many stores included automotive and tire service centers alongside in-store dining establishments branded as Red Grille or Strawberry Street Cafeteria—known as Café Rouge or Moisson d'Or within Quebec.