Woolies Thinking
Even before the long awaited crisis of capitalism has reached its denouement a collection of ultra-leftists are starting to debate what they believe are opportunities for constructing a socialist economy over at the Socialist Unity blog.
What started it? George Galloway, their erstwhile leader, has proposed that the first step towards a better managed and fairer society should be the nationalisation of Woolworths:
In my view, Woolworths ought to be on Business Secretary Lord Mandelson’s list of companies which the government should intervene to save, as a matter of urgency. It’s on sale for just a £1 and, although there would be additional costs to keep it as a going concern, the government could turn it into a people’s Woolies, employing local people, buying from local producers and ensuring it provided the services and goods local people on low incomes need.
Well, that all sounds fine and dandy. Everyone likes a bargain after all, and a mere £1 in return for a bricks and mortar in every High Street in the land has the commentaters excitedly discussing what to do with the retail sites if and when Woolies is nationalised. Turning it into a workers’ co-operative is one suggestion, using it as an outlet for sustainable organic farm produce is another.
Well done George Galloway! the Unity denizens cry as one. God Bless you George! they cheer with gusto. His suggestion seems to be exceedingly popular.
But isn’t the sale price too good to be true? What of the ‘additional costs’ mentioned by Galloway? It’s up to a commenter with some experience of real world economics to pop the soaring balloon:
George, What planet are you living on? Just the small matter of debts of millions of pounds and the fact that it was losing approx £1,000 for every ten minutes it traded in the last 6 months to August. For God sakes…
Oh. That?
You might think the prospect of the idea of purchasing an organisation said to be losing £42,000 every day it opens its doors would make it less of a must have buy for hopeful members of the putative People’s Ministry of Retail Management currently hanging out at Andy Newman’s place. Not so.
If it goes bankrupt then there will be no debts and the government can have it for free…comes the riposte from a particularly Panglossian commentator before they continue collectively deciding how best to construct socialism in one economic sector:
The entire retail sector, (Tescos, M&S, along with Electricity, Gas, Water) the lot, needs to be nationalised and re-organised towards green, fair-trade, local (where possible) production and offer a fair deal to third world producers. The huge productivity benefits of such a reorganisation should result not in job cuts but in a shorter working week on the same wages for the largely female staff in this sector…says one.
…nationalised monopoly retailers would open up the possibility for directing and planning the economy along a demmocratically determined pro-environment, pro-society course by and in the interests of the working class and society as a whole…adds another.
The small matter of what should be done with Woolworths many creditors or the requirements of normal insolvency practice clearly mean nothing to the assembled toytown Trots, as neither question is debated in the comments under the article. The more important question of why any taxpayer funded government, socialist or not, should saddle itself with a trading organisation capitalists couldn’t keep going after a hundred years of practice seemingly a matter of no concern to them either.
It’s too late for Comrade Newman’s generation obviously but isn’t this sort of thing evidence to support a case for economics being a compulsory subject at school?
Comments
| 7 December 2008, 5:20 pm |
I rather wish Galloway, the SWP, Respect and associated Trot groupuscules would actually take over Woollies. It would keep them busy and can you imagine the sort of business they’d run? Clearly, Pick’n'Mix would be out for a start–the very definition of an ideologically unsound confectionery mix. They could of course replace it with an All Red (or maybe even) All Red and Brown or All Hezbollah) with people’s portions pre-weighed.
The problem is the prospect for the poor old staff. Wouldn’t want to wish that lot as bosses (sorry, fellow comrades of the collective ) on anyone. They could do a roaring trade on locks for changing, though.
| 7 December 2008, 5:24 pm |
If George will bring back public loos, I will vote for him.
I’m tired of getting my shoes muddy while peeing in the bushes in public gardens.
| 7 December 2008, 5:30 pm |
A friend of mine, while on a university organised trip to the Soviet Union, went shopping at Moscow’s ‘flagship’ GUMM department store.
She said the staff were surly, when they weren’t drunk, that the place was in a shambles and that the products were mostly of an incredibly low and dubious quality.
Perhaps Galloway draws inspiration from that example.
| 7 December 2008, 5:31 pm |
I quite liked having a place that sold baby clothes and lightbulbs – and that wasn’t an out of town tescos.
| 7 December 2008, 5:38 pm |
and the fact that it was losing approx £1,000 for every ten minutes it traded
You might think the prospect of the idea of purchasing an organisation said to be losing £420,000 every day it opens its doors
Are they working 70 hour days?
Isn’t this sort of thing evidence to support a case for arithmetic being a compulsory subject at school?
| 7 December 2008, 5:44 pm |
The idea of Galloway running Woollies (renamed The Glorious Islamotrot Revolutionary Enterprise) fills me with dread. The man couldn’t run a whelk stall unless it was part funded by Tehran.
| 7 December 2008, 5:48 pm |
I am an impossiblist, I like being a utopian socialist. I want a world without states and without poverty and oppression.
When I read the woolies post I laughed out loud, what a ludicrous load of crap!
I despair of these fake socialists, they play at the politics, they make poses for the cameras knowing that none of what they say or do matters, they denounce each other and launch holy fatwas against each other safe in the knowledge that nobody takes them seriously.
| 7 December 2008, 6:00 pm |
Two posts from Marcus in two days, and neither of them involve Israel or angst about any international event. I’m in heaven.
the government could turn it into a people’s Woolies, employing local people, buying from local producers and ensuring it provided the services and goods local people on low incomes need.
Woolies doesn’t have much of fresh food section, you knob (and, no, I don’t include limp sandwiches in this). In fact, what it’s best at is stationary and basic household items. The city centre stores were loosing money hand-over-fist, as they – in keeping with the general over-spend attitude to ape Dod’s desired lifestyle – tried to be something they weren’t. The stores elsewhere, including principle towns of rural areas (e.g. population, 5,000) were lifelines and should still have a future.
Why is it that self-styled socialist revolutionaries know naff all about this?
| 7 December 2008, 6:05 pm |
Parhaps after the Galloway Woolworths merger all the accounts go missing.
| 7 December 2008, 6:05 pm |
“Are they working 70 hour days?
Isn’t this sort of thing evidence to support a case for arithmetic being a compulsory subject at school?”
Whoops, I thought it was £10,000, not £1,000.
Corrected now. Blame my useless eye surgeon not the Scottish education system…
| 7 December 2008, 6:15 pm |
This is of the same order as David ‘Messiah’ Shayler’s plea that “every government should print their own money.” A complete inability to understand what money and debt are, coupled with absurd nationalization fanstasies that lead to this sort of thing.
Readers of Asian Voice, its sister paper East and the News on Sunday know all about how good Galloway and his far-left chums are at running commercial concerns.
| 7 December 2008, 6:27 pm |
I’m not sure what I’d be more concerned about, if George was involved.
The tills or the till girls.
| 7 December 2008, 6:29 pm |
He might do some pick ‘n mix, Tim.
| 7 December 2008, 6:42 pm |
What a great idea. Presumably George has taken into account that even while it makes huge losses
a) It sells cheap products. Local suppliers can’t meet these prices and so cannot supply
b) Its products are tailored towards its customers who might want a cheap Dr Who DVD rather than organically grown products
So George would presumably increase prices, change the products on sale and lose all its old customers. It would need to rebrand itself to attract new ones to take their place.
Unfortunately the name Waitrose has already been taken.
Three cheers for the people’s champion.
| 7 December 2008, 6:43 pm |
Whoops, I thought it was £10,000, not £1,000.
If it ever did become the people’s Woolies you’d be a shoe-in for head of accounts, Marcus.
| 7 December 2008, 6:53 pm |
The entire retail sector, (Tescos, M&S, along with Electricity, Gas, Water) the lot, needs to be nationalised
Hahahahahaha
| 7 December 2008, 7:16 pm |
Alex “He might do some pick’n'mix”
Best comment ever.
| 7 December 2008, 7:19 pm |
The thing about being a socialist dreamer is that you never have to put any of your dreams into reality; annoying factors like getting them to work or managing them never have to be considered. What a great job!
| 7 December 2008, 7:48 pm |
I’d recommend, slightly tangentially, a Radio 4 documentary which was broadcast on Thursday, about the Partisan coffee house, a socialist meeting place in 1950s London where the New Left met and which wanted to encourage patrons to sit and talk politics endlessly, unlike other coffee bars which they claimed only wanted you to drink your coffee and vacate the premises asap. Needless to say it went bust. It’s still available on the BBC iPlayer.
Or consider the attempt to create a new Sunday newspaper from a left perspective, the subject of a hilarious episode of the documentary series Lefties. it’s all up on YouTube and worth an hour of anyone’s time. Needless to say, it went bust.
Here’s a link to the BBC site:
http://www.bbc.co.uk/bbcfour/documentaries/features/lefties3.shtml
This would all be harmlessly funny, except that real people’s pension funds were used to fund the newspaper, which squandered them in an orgy of posturing, attitudinising and all-round moronocy. Who funded the Partisan I’ve no idea. But whoever did, their investment vanished down the drain.
Socialists who can run businesses are vanishingly rare – perhaps because they think turning a profit is reprehensible. Which is fine and all, until other people’s money runs out
| 7 December 2008, 7:58 pm |
hasan,
to be fair to Galloway its doubtful that “East” was ever intended to be commercial, rather a propaganda sheet corruptly funded from Pakistan
http://www.jammu-kashmir.com/archives/archives1998/98june28.html
“Documents show that the Pakistan government agreed an initial budget for the weekly newspaper of £547,000. According to a memorandum dated Jan 2, 1996 the Pakistan government proposed to “covertly sponsor” the publication, with money allocated to “the Secret Fund of the High Commissioner for Pakistan in the UK as a special grant for the project”. ”
When the Bhutto Government fell it all went pear shaped,but not before George had written some hilarious begging letters.
On May 8, 1997 Mr Galloway wrote to Mr Sharif talking of Labour’s “landslide victory”. The preamble over, he got to the point: “Alas I must draw your attention to a critical issue which risks gravely embarrassing Pakistan and Labour just on the threshold of the new era. As you will see from the file I undertook to keep “The East” going until the General Election to avoid the embarrassment of the paper’s collapse. The Government of Pakistan – in the shape of the then Foreign Secretary – promised to pay the costs for February, March and April – totalling £150,000. None of these instalments arrived.
“Consequently I now face creditors to the tune of £141,000. Now that Parliament is back, they are literally coming through my door at Westminster demanding money.
http://www.hvk.org/articles/0403/242.html
Of course, auditors found large amounts of cash could not be found,and Asian Voice Ltd never filed accounts.
| 7 December 2008, 8:06 pm |
| 7 December 2008, 8:34 pm |
Well, before anyone gets too sneery about workers’ co-ops in the high street, let’s remember Waitrose is part of what is effectively a workers’ co-operative (the John Lewis Partnership).
Maybe a slimmed down chain, owned by the workers wouldn’t be a bad idea.
I think this topic needs to be viewed in the context of billions of pounds being thrown at bonus-happy bankers.
| 7 December 2008, 9:05 pm |
Have they learnt nothing at all from the lessons of history, and in particular 70 odd years of the Soviet Union and its empire?????
| 7 December 2008, 10:52 pm |
I agree with field. Workers’ cooperatives can succeed on a relatively small scale and offer a lot of advantages over traditionally-owned and run businesses. However the idea of a state-owned retail chain seems a non-starter.
| 7 December 2008, 11:10 pm |
KMcC said”Or consider the attempt to create a new Sunday newspaper from a left perspective, the subject of a hilarious episode of the documentary series Lefties. it’s all up on YouTube and worth an hour of anyone’s time. Needless to say, it went bust.”
Many moons ago I worked as a photographer for NoS and they still owe me £100.
| 7 December 2008, 11:40 pm |
Sorry? A 1000 pounds every ten minutes is 6000 quid every hour isn’t it? Which would be 144,000 every day assuming they trade for 24 hours? Or 72,000 if they only do so for 12 hours. I don’t see where the 42,000 comes from.
I must have done something wrong. Can we have an explanation of the figures?
And while I agree Galloway is bonkers and his idea is worse, if we calculated how much the Olympics were losing per hour, or the Dome or the NHS Spine or any IT programme the Government is involved in, I am sure that Woolies would look a bargain.
| 8 December 2008, 12:16 am |
Fair point, So Much. It would require a seven hour day for £42,000. Let’s forget opening hours: as we all know, any business will require cleaners and shelf-stackers working after the doors close.
Call yourself working-class, Marcus? The name itself should be a giveaway.
| 8 December 2008, 12:45 am |
They really are a bunch of total knob-ends aren’t they? Utter numbnuts.
I suppose I should compose myself, but what really gets me is a sense of frustration for them themselves. I mean, to think that these people think they are representing a great historic movement, an entire ideology, a vast class interest, no less. And supposedly representing this, all they can do is hang around on ill-read blogs sounding off about stuff which they clearly have no clue about. I mean, the fucker in the comment in Marcus’ piece manages to place Woolies under entirely the wrong insolvency regime, quite apart from completely misunderstanding the purposes of administration. Do they know nothing of economics, the law, even – for the love of God – common sense?! Why do you think it’s on sale for a quid you losers?!
Now, please, it’s just embarassing. If you’re going to go to the trouble of being opinionated, and controversially opinionated at that, the very least you can do is ensure that you have some understanding of the way the world currently works beyond the fact that you have some vague feeling that it’s all corrupt and all the fat cats are, like, on the take, yeah? This will avoid embarassed silences on the part of one’s interlocutors and frustrated shrieks like this one. Must – really must – try harder.
| 8 December 2008, 12:50 am |
I very much like Waitrose, by the way. It’s a worker co-operative and the most resolutely snobbish and middle class of all the supermarkets, designed to provide all the stuff that appears in a metropolitan trendy’s wet dream. Have your cake and eat it or what? Remember, nothing’s too good for the workers, comrades.
| 8 December 2008, 7:00 am |
Woolworths has failed to find the right product lines. Its shelves are a chaos of jumble. There appears to be no sensible logic behind the selection of products. It’s not surprising Woolies is for sale for few pennies. It’s only nostalgia that’s kept Woolies going so long.
It was the first of the cheap and cheerful shops. Now there’s an ‘Everything for a Pound’ on every High Street. But even so I believe Woolworths is not beyond redemption. It might take a near miracle. But somebody like Branson might be able to make a go of it.
| 8 December 2008, 9:10 am |
Let’s also not forget that the Nationwide and Co-op Bank – both non-capitalist organisations – have both emerged from the current financial crisis very well.
| 8 December 2008, 10:10 am |
Field – what on earth are you talking about?
Explain how a building society and a bank are not capitalist organisations.
| 8 December 2008, 10:27 am |
Its wasn’t nostalgia that kept woolies going, it was the property portfolio. Everybody knew the business was hopeless, but as long as it could be kept going without losing too much, eventually it was assumed the very appealing properties would attract a buyout by a developer who would break it up.
Unfortunately the operating losses kept getting worse and now the value of the property portfolio is on the slide. So they missed their chance. But neither management nor shareholders ever thought the business was going anywhere, which is why nothing was invested in it.
In the end it still going to be bought by a developer (or a private equity group acting like one) and broken up, just after going into administration.
| 8 December 2008, 10:35 am |
Galloways latest witterings on woolies.
| 8 December 2008, 11:45 am |
The entire retail sector, (Tescos, M&S, along with Electricity, Gas, Water) the lot, needs to be nationalised
Yes, because retail businesses are inherently suited to a centrally planned economy, aren’t they?
| 8 December 2008, 1:30 pm |
They are not seeking to maximise surplus. They are seeking to benefit their members. Two entirely different concepts.
That’s why these institutions have survived well – though clearly you don’t like that observable fact.
| 8 December 2008, 2:38 pm |
clearly you don’t like that observable fact
amazing powers you have there, to divine my thoughts.
I’m delighted that those organisations are prospering. But to call a bank of all things a non-capitalist enterprise is just the silliest thing I’ve ever heard. It’s a bank: it aggregates savings to form new capital, which it then lends or invests to make profits.
So a capitalist institution like a bank that doesn’t make as much profit as others can be, under your formulation, redesignated a non-capitalist institution. Which means that up is down, so long as you say it is.
| 8 December 2008, 3:23 pm |
George Galloway has suggested that the Government buy Woolworths and turn it into 680 new co-ops. Well, as a strong supporter of co-operatives, I think that something like this would be very good for the Co-op (there is always a Tesco or an Asda nearby, for those who cannot afford it; there is bother over the Co-operative Party’s continued use of Co-op premises) and the John Lewis Partnership (which, as much as anything else, includes Waitrose).
| 8 December 2008, 6:51 pm |
K McC –
I think if you really liked the fact you’d be celebrating it, rather than trying to mislead us into believing that true building societies or co-operatives behave like capitalist companies.
Under capitalism there is tremendous pressure on companies to simply maximise profit, often on a very short term basis.
That pressure is not there in the co-operative or the building society where the linkage is far more organic between individuals and the organisation.
| 8 December 2008, 8:16 pm |
I am celebrating it – some peasants are bringing me a glass of fizzy wine and then I’m going to flog them for being poor and looking at me
| 8 December 2008, 8:19 pm |
then I’m going to burn their divi cards
| 8 December 2008, 8:43 pm |
Watch out – the peasants are revolting.
They’re also quite likely to rebel.
| 8 December 2008, 9:21 pm |
Steve M,
can you pwn Marcus some more?
Best thing about this post. Glad I clicked on the link.
| 9 December 2008, 8:54 am |
Mr Danger, Thanks for that. I should have said that ‘nostalgia kept some of the customer base (such as it was), rather than any sensible business plan on Woolies part. The poilcy of pile it high and sell it cheap; everything from garden spades, to cds, to toys, to clothes, to snack foods, to kitchenware, to electronics, to greeting cards, to musical instruments, to books, to every sort of bric-a-brac one can imagine was the height of folly. How could they hope to survive with such a crazy range of products? The very idea was ridiculous.
| 9 December 2008, 9:22 am |
It was impossible for Woolies, with the amount of floor space needed to display everything including the kitchen sink to compete with the twin threats of the catalogue shops who have virtually no display area and the Everything for a Pound shops who have taken over the pile it high flog it cheap niche.
Wooliesaurus was unable or unwilling to adapt.
| 9 December 2008, 8:57 pm |
then I’m going to burn their divi cards
I have the modern-day equivalent of the Divi card – it’s the Co-Operative Membership card now. Got a cheque for a whole £7 last week.
| 10 December 2008, 12:20 pm |
Has Dave Dudley got a new job as George Galloway’s speechwriter?


No, it’s evidence that people should not give opinions on matters about which they know sod all. If everyone followed this rule, the rubbish on talk back radio would be reduced by 98%. It would also severely cull blog posts and comments. In fact, it’s an ultra Green policy for cutting back on waste generally, and would have the side effect of creating serious unemployment among newspaper columnists.