In a year already strained by global upheavals, 2020 marked the end of an era for Lord & Taylor, the oldest department store in the U.S. Founded in 1824, Lord & Taylor had long been an icon in American retail, renowned for its quality and legacy.
Yet, the events of 2020—including the global COVID-19 pandemic and widespread economic challenges—proved too overwhelming, leading the retailer to announce the permanent closure of all 38 of its locations.
The decline of Lord & Taylor, however, was set in motion well before 2020.
In 2017, the company made the historic decision to sell its iconic Fifth Avenue flagship store in New York City to WeWork for $850 million.
This sale marked a turning point, symbolizing the retailer’s struggle to adapt to a rapidly shifting retail landscape, where traditional department stores faced fierce competition from e-commerce giants. The landmark building,
Which had served as Lord & Taylor’s flagship for over a century, was later acquired by Amazon to become part of its New York City office space.
In 2019, Lord & Taylor’s future seemed hopeful when it was acquired by Le Tote Inc.,
A French clothing rental company, for $100 million.
This acquisition aimed to revitalize the brand by merging traditional retail with the emerging trend of rental fashion.
However, financial troubles persisted. By August 2020, Lord & Taylor filed for Chapter 11 bankruptcy, initially planning to keep 14 stores operational. But mounting challenges and the economic downturn forced a full closure just weeks later.
Lord & Taylor’s closure reflects the larger struggles traditional retailers have faced, exacerbated by the pandemic, as consumers increasingly turned to online shopping.
The end of Lord & Taylor, a nearly 200-year-old institution, highlights both the transformative impact of 2020 and the resilience needed for the retail industry to adapt to modern demands.
