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The wonder of Woolworths is not that it's on the brink of collapse but that it's taken so long. For almost 20 years, the store chain has been in trouble - at Christmas 1991, the directors admitted trading had been disappointing.
It's the same with MFI, also nearing the precipice. They're both groups that have been in the departure lounge for ages, throwbacks from a bygone age. To say they're victims of this recession or the credit crunch isn't correct - the economic gloom may signal the death knell but they've had this coming to them for a long time.
They belong to a bygone age. Woolies to when people shopped in-town, before Tesco and the rest swamped the nation's roundabouts and retail parks with giant stores that sold precisely everything they did. Attempts by Woolworths to provide some distinction only served to make the chain look ever more bizarre and increasingly past its by date. So the branches were supposed to cater to someone who wanted an impulse bag of Pick '*' Mix with a box of lawn fertiliser, a fountain pen set and a CD of a bloke you've never heard, of "singing as" Bing Crosby. Such people, not surprisingly, were hard to find.
The arrival of the new discounters like Aldi and Lidl was also a blow. It meant that Woolworths could no longer even do cheapest with conviction.
Hard to imagine now but MFI was actually in the vanguard of out-of-town. It then fell victim to snazzier, trendier, better value operators like Ikea. In a previous crisis, they needed the cash and sold-off Howden, their profitable joinery business that supplied the building trade. A recent push upmarket failed to deliver and this current property slump (the first aim of new homeowners is often to install a new kitchen) is proving to be the last straw.
The passing of both chains at this moment, in the midst of a deepening recession in the run up to Christmas is the last thing the industry needs. The sight of posters marking "closing down" sales, with the accompanying job losses, is bound to send the High Street into even deeper depression.
The City coined a phrase for companies like Woolies and MFI, one that was not a term of endearment but a reference to living on past glories. They're known as "legacy" retailers. In the past, that bracket would also include Boots and WH Smith. Tellingly for the managements of Woolies and MFI, they have been turned round and now appear to be doing well.
A slice of British life is disappearing - and that is always sad. But the truth is that Woolies and MFI have been heading that way for years and we long since stopped caring.
Reader views (6)
As a former supplier to MFI I have absolutley no sympathy at all with the comapnies plight, for years MFI managment and buying team have bullied suppliers into writing Cheques to keep them afloat whilst denying the fundemental fact that there business was flawed. Ironcially the furniture now produced is of a much higher quality than ever before, unfortunaltely the general buying public wanted it to be cheap and cheerful, you only have to look at the increase in Agros furniture sales to see where there customers went, know your audience. For the regular staff I feel very sorry let down by egotisical management and idiots.
- Tony Hughes, BOURNEMOUTH
Woolworths started to go downhill when they stopped selling their cakes and buscuits.
Given the success of poundstores Wollies would have done better if they had gone back to their origins where nothing cost more than 6d. A version of the pounstore format.
Joke - Did you hear about the Woolworth customer who told the assistant to "keep the change", the store manager then handed the customer the deeds to the shop.
- Melvyn Windebank, Canvey Island, Essex
I think this article is ill written with scant regard for the people affected by these sad events. If the writing's been on the wall for so long then it's commendable to those staff involved in keeping them going for so long in the face of such idle disregard for companies which have in the past been standard bearers for their industries. In the matter of MFI they have long been the butt of jokes by cheap one liner comedians filling clubs up and down the country lambasting the quality of their products. This 'branding' unfortunately stuck with the public when it was not entirelly merited. Now look. I have never had cause to complain about the quality of any of the products I have bought from them. I do however have cause to complain about written narrative which assumes they failed because they were inferior to new rivals. Is this opinion borne out of experience or did you simply hear the odd joke? What you are condemning is British industry for the sake of overseas competition and you shouldn't be proud to be sticking the final nail in the coffin as this article sounds. Not to mention the untold suffering on families across the country who work very hard for these companies. It happens all over this country. TVR, MFI, Woolworths. We don't look after our own because we think it's okay to mock them. This makes me very angry. I am proud to say I have products from all three.
- Richard Butterfield, Barnsley, England
Don't agree with you about MFI. We bought a kitchen from them 7 years ago and it's great and still going strong. I would rather cut off my right arm than buy a kitchen from IKEA. Their goods are cheap but they also look cheap. They make products look good in their brochure but in reality they are pretty shabby and badly made.I would only buy small accessories from IKEA. The only big purchase I had from them was a sofa which I sold because it was either that or end up with a twisted spine it was so uncomfortable. Lets hope MFI survives. If it does I shall be buying a new kitchen from them in the future.
- Lisa, London
I think that it will be a great shame to see the loss of Woolworths from the high street, companies like Tesco have infact mimicked Woolies and its variety store proposition. The possible exit will leave the high street and other retailers with their own problem of how to keep the footfall in the area as Woolworths has stores in many locations. Finally i feel that the writers comments are rather cold and unthoughtfull considering there are real people invovled in the companies difficulties.
- Glenn Fairclough, wirral, uk
Well it looks like MFI are almost ready to put locks on their doors. Just found out that some bedroom furniture which I have been waiting 2 weeks for is not going to arrive because the delivery firm are no longer delivering MFI products because of a row over pay. Luckily for me my purchase was on credit card so this will not become a problem but what about others who paid on debit card??? It's a sorry affair and certainly we have not seen the last of this kind of thing happening.
- Steven, Southampton
