So Woolworths is going to return as an online-only retailer, having been bought by Shop Direct (which owns Littlewoods and Choice) after going into administration.

Woolworths closes (Pic by osde8info on Flickr)

It’s going to be very interesting for a number of reasons.

The first is trying to guess what it will actually sell. It had a music download shop, which closed with the High Street stores, but there’s logical reasoning to suggest digital downloads make a lot of sense. The PaidContent UK article has a quote which claims Woolworths will do entertainment and everything that made it famous on the High Street – but was it really famous for entertainment?

After all, it started by selling children’s clothing, toys and stationary. And Shop Direct might have seen success with Littlewoods, but that’s a name known for catalogue shopping.

And while there’s evidence that ‘bricks and mortar’ shops can do well online, the same evidence lists the top four retailers as Amazon, Argos, Play.com and Tesco.com.

An interesting post on the icrossing blog uses the example of Dixons to show that the move online is the right decision, but mentions how Dixons bought and integrated online photo service Pixmania and the search and affiliate expertise it had.

And that’s where I think Woolworths could very well fall down.

No-one has stated, or even managed to suggest, what the belief will be – and ‘The Bankruptcy of the Non-Descript‘ is what I believe caused the collapse of Woolworths, Zavvi and MFI. (Just realised I’ve restated Mark Earl’s ‘Purpose Idea’ from the other angle.)

Sadly the awesome Brand Tags doesn’t include Woolies. But I doubt entertainment would be first on the list. It’s Pic’n'Mix in both sweets and belief. A ‘five and dime‘ store with sweets, entertainment, furnishings, cookware, pens and paper and other random stuff.

That has a benefit offline, should you need a selection of random stuff, and not want to wander round a larger department store, or go for the clear low cost of Poundland. And if you’re of a certain age, you could meet with your friends and have a cup of coffee.

But online we already have Tesco and Argos. And anything is just a click away.

And in entertainment, Woolies is facing Amazon, iTunes and a music industry that is struggling to workout what it should do to survive.

And those loyal customers who used it as a meeting place are likely to have already found online alternatives – and if they’re not online yet, the prospect of Woolworths won’t make them buy a new PC and broadband.

But maybe there is a loyal niche group who could find a solution – there’s a small group on Facebook discussing it, even if the dreaded brand word crops up too much for my liking.

And I like the fact the Woolworths site is currently displaying a form for comments on the good and bad about the business. Even if the reassurance it’s returning is a bit naff. ‘I haven’t shopped since Woolworths closed’, a man sobbed.

But whether Woolworths becomes something really different and cool with a purpose that makes sense, or collapses for a second time in a supernova of pic’n'mix, it’s going to be fascinating to watch.