Isaac Wolfson - Great Universal Stores

Great Universal Stores

In 1930 he was exhibiting at a trade fair in Manchester City Hall. George Rose was then a director of Great Universal Stores, only just renamed from mere Universal Stores. Rose liked Wolfson's display and ordered 500 clocks, which for Wolfson at the time was a big order. Rose took Wolfson to lunch and showed him the G.U.S. Devonshire Street factory. Soon Wolfson was G.U.S.'s chief buyer but he retained his own business and from G.U.S. took profit share and share options in lieu of salary.

Universal Stores was founded in 1900 by Abraham, George and Jack Rose. The company developed a mail-order trade, sending out small (by later standards) catalogues. In 1931, just after Wolfson joined, it went public but got into serious trouble and the shares plummeted. There were a number of reasons: financial inexperience, an ill-advised move from Manchester to London, a fire and the recession. These troubles hastened the death of Abraham who was already a sick man.

Wolfson gradually acquired shares from the Rose brothers using cash lent by his father-in-law and by Archibald Mitchelson, who was a friend. In 1932 he became joint Managing Director with George and in 1934 sole Managing Director. In his first eighteen months Wolfson streamlined and rationalised the company. A loss of £55,000 in 1932 became a profit of £330,000 the next year. From 1934 onwards Wolfson acquired companies with large Hire Purchase debts and property assets, some for G.U.S. and some for his own business. These acquisitions provided cash for more acquisitions. Acquired companies included Midland and Hackney, Drages, Alexander Sloan, Jays and Campbells, British and Colonial and Smart Brothers.

Wolfson was too old to go to war. As World War II approached and during the war he continued to buy. He reasoned that if Hitler won the war his businesses would be finished anyway but if not then the opportunities would be enormous. In 1932, G.U.S. was worth £700,000, in 1938 £1,980,000 but by 1948 it was £16 million. This remarkable growth rate and aggressive acquisition plan was then succeeded by a gentler growth rate and a more corporate style.

By 1970 Wolfson had sold his private business and handed over control of G.U.S. to his son Leonard.