Montgomery Ward invented mail-order retail — then refused to open stores after WWII

Montgomery Ward was founded in 1872 by Aaron Montgomery Ward, who pioneered the mail-order catalog business. His innovation let rural Americans buy goods by mail, bypassing expensive local general stores. By 1904 the company was mailing three million catalogs a year, each weighing four pounds. By the 1930s it was the largest retailer in the United States.

The turning point came after World War II. CEO Sewell Avery was convinced that the post-war economy would slip back into depression, as it had after every major war. He refused to open new stores, refused to renovate existing ones, and even refused to repaint the buildings — a policy that persisted for over a decade. Sears, by contrast, expanded aggressively, opening hundreds of new locations and overtaking Ward as the country's dominant retailer.

For decades Ward struggled to regain ground. The rise of Walmart, Kmart, and Target in the 1980s squeezed its customer base further. In 1988, the company was taken private in a $3.8 billion leveraged buyout backed by GE Capital. The debt load made it harder to invest in stores or operations. Ward filed for Chapter 11 in 1997, emerged in 1999 under GE Capital ownership, and tried to reposition as 'Wards' with a smaller store count — but it was too late.

After disappointing Christmas sales in 2000, Ward announced on 28 December 2000 that it would cease operations. All 250 remaining stores were closed, and 37,000 employees lost their jobs. Sears bought 18 of the locations in early 2001. The Montgomery Ward brand was later revived as an online retailer by new owners, but the physical chain was gone — a 128-year empire ended by one CEO's mistaken bet on the future.