10 Retail Chains That Didn’t Survive the 2000s
Here's a look back at 10 once-popular retail chains that couldn’t survive the challenges of the 2000s, from economic crashes to the rise of online shopping.
- Alyana Aguja
- 4 min read
The 2000s saw the collapse of many well-loved retail chains as consumer habits shifted and economic pressures mounted. From electronics giants like Circuit City to bookstores like Borders, these brands struggled to adapt to the rapidly changing retail landscape. Their closures serve as reminders of how quickly market dominance can vanish in the face of technological change and poor strategic decisions.
1. Circuit City
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Once the second-largest electronics retailer in the United States, Circuit City was a go-to spot for TVs, computers, and home appliances. The company struggled with poor management decisions, including the elimination of commissioned sales staff and lagging behind its rivals in online retail. By 2009, it had closed all of its stores after filing for bankruptcy.
2. Linens ’n Things
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Linens ’n Things was a major home goods retailer known for its bedding, towels, and kitchenware. It faced heavy competition from Bed Bath & Beyond and online marketplaces, while rising debts during the 2008 financial crisis sealed its fate. The brand shut down its physical stores in 2008, later existing briefly as an online-only retailer before disappearing entirely.
3. Borders
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Borders was once a powerhouse in the book retail industry, offering a wide range of books, music, and coffee shop experiences. However, its slow adoption of e-commerce and failure to embrace e-books left it behind as Amazon surged ahead. The company filed for bankruptcy in 2011, marking the end of a beloved bookstore chain.
4. Sharper Image
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Known for selling futuristic gadgets, massage chairs, and quirky electronics, Sharper Image had a strong mall presence in the 1990s and early 2000s. Sales plummeted due to a lack of fresh products and a failed air purifier that damaged its reputation. The chain filed for bankruptcy in 2008, though the brand name lives on through online and licensing deals.
5. KB Toys
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KB Toys was a mall staple for generations, offering action figures, dolls, and games for kids. Competition from big-box retailers like Walmart and Target, along with the rise of online shopping, eroded its sales. The company declared bankruptcy in 2008 and closed all its stores shortly after.
6. Mervyn’s
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Mervyn’s was a mid-tier department store chain popular for affordable clothing and home goods. Private equity buyouts loaded the company with debt, and its inability to keep up with fast-fashion competitors hastened its downfall. By 2008, all locations were shuttered after filing for bankruptcy.
7. Gottschalks
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This regional department store chain served the West Coast and parts of the Midwest for more than a century. Known for personalized customer service, it was unable to withstand the combined pressures of the recession and the rise of national retail giants. Gottschalks filed for bankruptcy in 2009 and closed all 58 of its stores.
8. Hollywood Video
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Before streaming, Hollywood Video was a major rival to Blockbuster in the home video rental market. The rise of Netflix’s DVD-by-mail service and later online streaming services quickly made physical rentals obsolete. Hollywood Video closed its last stores in 2010 after its parent company, Movie Gallery, went bankrupt.
9. Woolworths (UK)
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Woolworths in the UK was a variety store chain famous for its pick ’n’ mix candy, toys, and household goods. The company struggled to compete with supermarkets and discount stores while also dealing with rising operational costs. In 2008, it entered administration and closed all of its stores, ending nearly a century of presence on British high streets.
10. Steve & Barry’s
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Steve & Barry’s sold affordable casual clothing and was especially known for celebrity-branded lines like Sarah Jessica Parker’s “Bitten” and Stephon Marbury’s “Starbury” sneakers. The retailer’s rapid expansion left it overextended and vulnerable to economic downturns. By 2009, the entire chain had closed after filing for bankruptcy.