The phrase northern soul emanated from the record shop Soul City in Covent Garden, London, which was run by journalist Dave Godin. It was first publicly used in Godin's weekly column in Blues and Soul magazine in June 1970. In a 2002 interview with Chris Hunt of Mojo magazine, Godin said he had first come up with the term in 1968, to help employees at Soul City differentiate the more modern funkier sounds from the smoother, Motown-influenced soul of a few years earlier:
I had started to notice that northern football fans who were in London to follow their team were coming into the store to buy records, but they weren't interested in the latest developments in the black American chart. I devised the name as a shorthand sales term. It was just to say 'if you've got customers from the north, don't waste time playing them records currently in the U.S. black chart, just play them what they like - 'Northern Soul'.
The venue most commonly associated with the early development of the northern soul scene was the Twisted Wheel in Manchester. The club began in the early 1950s as a beatnik coffee bar called The Left Wing, but in early 1963, the run-down premises were leased by two Manchester businessmen (Ivor and Phil Abadi) and turned into a music venue. Initially the Twisted Wheel mainly hosted live music on the weekends and Disc Only nights during the week. Starting in September 1963, the Abadi brothers promoted all-night parties at the venue on Saturday nights, with a mixture of live and recorded music. DJ Roger Eagle, a collector of imported American soul, jazz and rhythm and blues, was booked around this time, and the club's reputation as a place to hear and dance to the latest American R&B music began to grow.
Throughout the mid-1960s, the Twisted Wheel became the focus of Manchester’s emerging mod scene, with a music policy that reflected Eagle’s eclectic tastes in soul and jazz, and featuring live performances by British beat musicians and American R&B stars. Gradually, the music policy became less eclectic and shifted heavily towards fast-paced soul, in response to the demands of the growing crowds of amphetamine-fuelled dancers who flocked to the all-nighters. Dismayed at the change in music policy and the frequent drug raids by the police, Eagle quit the club in early 1967.
Commemorative sew-on patch similar to those worn by Twisted Wheel members.
By then, the reputation of the Twisted Wheel and the type of music being played there had grown nationwide. By 1969, soul fans were traveling from all over the United Kingdom to attend the Saturday all-nighters. The venue’s owners had been able to fill the vacancy left by Eagle with a growing roster of specialist soul DJs. After attending one of the venue's all-nighters in January 1971, Godin wrote: "...it is without doubt the highest and finest I have seen outside of the USA... never thought I'd live to see the day where people could so relate the rhythmic content of Soul music to bodily movement to such a skilled degree!
The Twisted Wheel gained a reputation as a drug haven, and under pressure from the police and other authorities, the club closed in January 1971. However, by the late 1960s, the popularity of the music and lifestyle associated with the club had spread further across the north and midlands of England, and a number of new venues had begun to host soul all-nighters. These included the King Mojo in Sheffield, The Catacombs in Wolverhampton, Room at the Top in Wigan and Va Va's in Bolton