Woolworths to be resurrected as an online retailer

If you're an American, imagine if you will the sudden disappearance of a retailer whose brand is as big as Target. The recent loss of Woolworths in Great Britain is at least proportional. The great five-and-dime retailer -- the namesake of an institution that was actually founded in Pennsylvania in 1879 -- filed for bankruptcy (administration) last November, and began shutting the doors on all its UK retail outlets soon afterward.

Now, that nation's largest online retailer -- which also happens to operate conventional retail stores -- is gearing up to resurrect "Woolies," at least for now as a direct online merchandiser.

In a press statement this morning, Shop Direct Group CEO Mark Newton-Jones said, "We are delighted to be re-launching the Woolworths name online. Woolworths is a much loved brand that engenders huge affection among British consumers and is an important part of the country's retail heritage. In what will be Woolworths' 100th year, we are proud to be reviving the brand for future generations...We are confident that Woolworths, as an online brand, will once again prosper and, quite rightly, stay at the heart of British retailing."

The group does plan to assume some of Woolworths' subsidiary brands, according to local reports. Capturing the essence of walking in the front door and picking out candies from the pick-'n'-mix bins -- a store trademark right to the end -- will be difficult.

But more difficult still for the online retailer will be taking on this project while at the same time reorganizing itself during that country's worst recession in generations. Just last week, Shop Direct announced layoffs of as many as 1,150 employees nationwide, with hopes to relocate 250 of those. While the company does as much as 56% of its business online (with sales in that department growing by 44% annually, even now), Shop Direct says it intends to grow that number to 70% by next year. So it doesn't look like the Woolies brand will return to physical storefronts anytime soon.