12 Once-Beloved Retail Stores That Made Tragic Mistakes

Do you remember the excitement you felt as a child when your parents announced an unexpected trip to your favorite department store? Many share these cherished memories, including posing for family portraits and going back-to-school shopping at once-bustling stores like JCPenney or Montgomery Ward. They weren't just places to shop; they were places where you could save money at your favorite retailers while enjoying the experience.

However, like all things, culture changes, and so does the consumer-shopping landscape. This natural evolution has opened the door for online businesses to emerge while older ones, unfortunately, fade into obscurity, leaving us to reminisce over the good old days.

Discover why so many of America's department stores went astray and which ones have closed for good.

Once, it was impossible to pass a shopping mall or center without seeing the store "Where America Shops." At its peak, Sears-Roebuck was the largest retailer in the world, with nearly 3,500 stores across the United States. Now, only eight remain.

Its failure to adapt to e-commerce growth, combined with a reduction in its store network, declining customer service, and decreasing stock levels, led to substantial financial losses, totaling $11 billion in revenue, and ultimately resulted in a Chapter 11 bankruptcy in 2018.

JCPenney thrived for decades, driven by Big Book catalog sales and coupon promotions that appealed to budget-conscious shoppers.

However, in 2011, the store discontinued coupons and changed its look, alienating customers and triggering a 25% revenue drop. This, along with business losses caused by the pandemic and an inability to attract new customers, resulted in a $5 billion debt, leading to a bankruptcy filing in 2020.

Since then, most JCPenney locations have closed and liquidated their inventories. The remaining stores focus on attracting customers seeking apparel with inclusive sizing and a more diverse range of goods.

While Macy's once evoked prestige and touted brand-name apparel, that image now feels distant. The legendary store, once featured in classic films, is a shadow of its former self.

Macy's acquired multiple regional chains, such as Kaufman's, removing their local identities and community connections in the process, and replacing them with a homogeneous customer experience, thus eroding its brand.

This led to closing more than 150 of Macy's locations in 2024, which Macy's CEO said, "were built for a different era."

If you've ever been in a Kmart, you likely remember the blue light specials and the affordable prices that made shopping there hard to beat. During the 1980s, Kmart was the second-largest retailer in the United States, behind Sears. However, in 2005, hedge fund operator Eddie Lampert merged Kmart with Sears in an effort to revive both struggling stores. The $11 billion merger failed, as Lampert mainly focused on selling the companies' real estate rather than investing in their brands.

This, combined with increasing competition from more diverse retailers like Walmart and Target, drove Kmart toward bankruptcy, which was filed in 2022. The final Kmart location closed in October 2024.

At its peak, Bon-Ton operated across 24 states. It served smaller markets and regional malls, providing affordable clothing, shoes, and cosmetics.

In 2016, Bon-Ton closed several locations, and in 2018, the company publicly acknowledged its financial struggles and $1.8 billion debt. Eventually, it declared bankruptcy, the result of a decrease in in-store traffic as more customers chose to shop online. Bon Ton has since closed its last stores.

Texas-based Foley's opened in 1966. Customers recall personalized service amidst a well-curated selection of crystalware, fine china, and affordable mid-brand apparel, as well as luxury bedding and home decor. Foley's also offered wedding and baby registries, forging lasting memories with the store.

Although the beloved department store was financially sound, it was acquired by Federated Department Stores in 2006 and absorbed into the Macy's brand to expand its national reach in an $11 billion deal. This move permanently retired Foley's name.

When you think of comfortable bedding, kitchenware, and wedding registries, Bed Bath & Beyond often comes to mind. This store was renowned for its wide selection of home products and its famous 20%-off coupon postcards.

Although Bed Bath & Beyond became a social media favorite, the backlash from retiring coupons, failing foot traffic, and pandemic-related supply chain disruptions led the company to file for Chapter 11 bankruptcy in 2023, after 52 years in business.

Although this news may be disappointing for many loyal shoppers, there is reason to celebrate: Bed Bath & Beyond is back! The brand, now rebranded as Bed Bath & Beyond Home, opened its first store in Nashville, Tennessee, on August 8, 2025.

Founded in 1826 by Samuel Lord, Lord & Taylor was the oldest department store in America and was a pioneer in retail trends. Its prominent location and sprawling cursive branding on the sides of malls beckoned shoppers.

While the company continued to attract wealthy clients with substantial budgets, rebranding efforts were disrupted by the COVID-19 pandemic, leading to unforeseen layoffs and ultimately bankruptcy.

It now operates solely online, emphasizing a high-quality digital shopping experience.

If you were on the lookout for holiday decor or one-offs at a discount, you likely visited Big Lots. But in recent years, high inflation and declining consumer spending on big-ticket items have hit the retailer hard, leading to store closures and missed sales targets.

In 2025, however, Big Lots began to stabilize by reopening select stores in key markets and leaning into its discount roots. With a renewed focus on affordable home goods and seasonal merchandise, the brand is working to win back shoppers.

It was impossible to turn on a television in the 80s without hearing the Montgomery Ward jingle: "Montgomery Ward, the brand-name, saving store."

In fact, Montgomery Ward was an integral part of many families' lives, much like the family dog. They often did their back-to-school and Christmas shopping at one of the chain's 250 locations or placed an order from its vibrant catalogs.

The retail giant closed its doors after filing for bankruptcy in 1997 due to intense competition and a failure to adapt to changing consumer preferences; however, the name has since been resurrected as an online-only retailer.

Established in 1962, the interior designer's dreamscape gained popularity for importing handcrafted furnishings, decorative items, and one-of-a-kind decor and gifts. At its peak, Pier 1 operated 1,000 stores across the United States and Canada.

This move was partly driven by what Forbes called "serious misjudgments in the principles of marketing," including a focus on acquiring new customers at the expense of established ones and misidentifying competitors, which led to failed restrategizing plans. Unfortunately, the already-indebted company was finally pushed to file for bankruptcy in 2020, due to the so-called retail apocalypse caused by the pandemic.

The once-quirky retail giant now operates solely online.

Circuit City was a vast maze of digital gadgets, technology, and electronics. Ultimately, failure to promote products from major vendors like Apple, an underdeveloped website, the rise of major competitors like Best Buy and Amazon, and poor management decisions led Circuit City to file for bankruptcy in 2008. This move resulted in the closure of 567 stores.

From Sears to Circuit City, these once-beloved department stores remind us of a time when shopping meant more than transactions. Yet their stories also reveal how quickly the retail landscape can shift when companies fail to adapt.

Today, the convenience of online shopping dominates, with Amazon Prime members saving money with just a click, something unimaginable in the heyday of some of the above retailers.