The History of Caldor

Like most kids, I tagged along with my mother (without a choice) on most of her outings, especially when I was very young and my brother was in school for the day.  Most of the time, it was a long car ride across the county to a small town called Nanuet that contained our area's shopping and dining.  It was really only 15 or 20 minutes, but when you're 4, that's a long time.  

Several of my favorite childhood haunts were over in Nanuet: Pizza Hut, Toys R Us, Roy Rogers, Nobody Beats the Wiz, Modell's, and, of course, Caldor.  The Nanuet Mall was the only game in town until 1998, when the giant Palisades Center Mall opened in Nyack, a few towns away.  After that, the shopping and dining experience in Nanuet slowly died.  

Aside from a few of the times that I can remember my Mom left me in the car alone in the parking lot (which was entirely normal back then, so stop pretending to be mad), most of the trips blur together in the mundaneness of everyday errands.  That is, unless we did something special together before returning home.  It would be a win for me if we picked up a McDonald's Happy Meal or did some other fun activity like going to the local farm for apples and fresh-baked cookies before returning home.  

I still remember that drowsy feeling I'd get in the car, sitting in the sunshine as we drove.  I likely fell asleep frequently on these outings when I was very young, just as my own child used to.

However, one store in particular always stuck out as a "good" outing.  Caldor was a fun place to visit as a kid.  It had nearly everything anyone in the family could want.  This hodgepodge of a department store had a section for almost anything, including clothing, jewelry, electronics, toys, and more.  

Once, I remember Mom getting rain checks for the latest Nintendo games when the big-name games were all sold out.  I had never heard of a raincheck before, but we used that process several times at Caldor.  Do stores even offer rainchecks anymore?  

Another trip that sticks out in my mind was with both Mom and Dad when they made a big purchase on a giant electronic piano keyboard for my brother one Christmas.  That was fun because I felt like I was being let in on a big secret, although I'm not sure why I never questioned why it was labeled "From Santa."  

Caldor was where my mother bought my Dick Tracy lightup wristwatch, too.  I played with that thing so much that the light-up portion of it burnt out after a while.  Other memorable trips to Caldor include when she took me to see Teenage Mutant Ninja Turtles and Batman Returns in the movie theater.  Afterwards, we stopped into Caldor and bought the movie poster for my bedroom wall.

A Dick Tracy display at Caldor during "the summer of Tracy" in 1990

Mostly, though, I remember the front of the store.  I was fascinated by the brightly colored "rainbow" sign.  The rainbow was only shades of brown, yellow, and orange, but as I've mentioned before, anything orange immediately gets a closer look from me.  As a matter of fact, I seem to remember that when I was very little, I used to call it "the rainbow store" when asking where we were going.  

As a very little kid, I was always amazed at how (in my little brain) the store's front door was split open like an upside-down "V" that looked like a ramp reaching up to the sky.  The upside-down "V" was better known as the "swept wing" facade introduced by the company in 1972 for its 21st anniversary.  I'm sure I wasn't the only kid who wanted to climb to the roof every time I walked underneath it.  

I was also enamored with the decorative rocks and pebbles stuck into the cement on the exterior walls.  I'd run my fingers across them as much as Mom would let me before she pulled me into the store for whatever that day's trip called for.   

I can't verify that this image is of the Nanuet location, but the entrance looked identical.

Eventually, the Nanuet location would yank down the rainbow and put up the new logo in the mid to 90s, and the store became more of a "schlock" store as the company began to go under.  The Nanuet location closed in 1999, along with the entire chain, and became what is still today a Kohl's.  

For anyone else in the New York area, or the Northeast at least, the name Caldor evokes a certain sense of nostalgia.  The store was often self-described as "the Bloomingdale's of discounting" and aimed to carve a unique niche of blending quality merchandise, competitive pricing, and a department store-like experience.

Founded by Carl and Dorothy Bennett, the chain grew from a modest second-story store in Port Chester, New York, into a regional powerhouse with 145 stores across nine states, generating over $2.5 billion in annual sales at its peak.  Despite its eventual liquidation in 1999, Caldor remains a cherished memory for those who shopped its aisles, worked its registers, or grew up around its "rainbow" covered storefront.

After visiting an E.J. Korvette store in 1950, Carl and Dorothy Bennett decided to open their own discount retail venture.  With $8,000 in savings from the Army and a bank loan of $50,000, they opened the 1,200-square-foot store in Port Chester, New York, a year later, in 1951.  They named their new business "Caldor" by combining their first names.  

Unlike many postwar discounters that relied on closeouts or irregular merchandise, the Bennetts envisioned a store that offered quality, brand-name goods at 10-40 percent below manufacturers’ suggested prices.  They emphasized the importance of “the best available merchandise at the lowest possible price,” setting Caldor apart from competitors that often stocked lower-quality items.

The Bennetts’ early strategy emphasized customer service and operational efficiency.  Stores featured wide aisles, bright lighting, and well-informed staff trained through regular sessions and merchandise shows.  Caldor’s interiors, designed by the same firms used by upscale retailers, mimicked department stores rather than bare-bones liquidators.  

By 1958, Caldor had expanded to a 70,000-square-foot store in Norwalk, Connecticut, adding clothing to its regular inventory of toys, housewares, and gifts.  The 1960s saw steady growth, with Caldor going public in 1961 and expanding to four stores by 1963.

The chain rapidly expanded in the 1970s, fueled by a booming post-Vietnam War economy and growing consumer demand for discount retail.  By 1981, Caldor operated 63 stores across New York, Connecticut, Massachusetts, and New Hampshire.  Company revenues reached $700 million by the end of the decade.

Caldor maintained a regional focus in the Northeast for a good reason - all stores were within a day's travel from its Norwalk headquarters.  This allowed tight cost control and streamlined advertising.  Caldor’s ability to pay suppliers promptly led to good business relationships, which reduced costs, enabling it to undercut competitors while maintaining quality.  This strategy resonated with a broad customer base, leading to a 1980 New York Times article, which quoted retail analyst Walter Loeb, who said, "Caldor appeals to... budget-conscious blue-collar workers to middle-class white-collar shoppers."

By 1981, Caldor's success had attracted the attention of Associated Dry Goods (ADG), a large conglomerate that owned upscale companies like Lord & Taylor.  ADG purchased Caldor for $313 million, marking its first foray into discount retail.  The purchase was primarily driven by the potential for growth at Caldor, along with the company's low debt, which, in a statement, they attested to Carl Bennett's prudent management.

Bennet stayed with his company until he retired in 1985.  By then, he had grown Caldor to over 100 stores with over $1 billion in annual sales, which, adjusted for inflation, would equal $2.9 billion.  Unofficially calling themselves the "Bloomingdale's of discounting," Caldor's business thrived as national brands were eager to be featured in their stores.  A liberal return policy and the polished store environment created more consumer enthusiasm.  

If the 1970s were a time of significant expansion, the 1980s were Caldor's golden era.  

Caldor expanded aggressively, reaching 166 stores at its peak and employing 24,000 people.  The stores were frequently community hubs, offering everything from clothing to electronics, toys, and home goods.  According to a Reddit user who claims to have been a Caldor store manager during this time, the company instituted a policy in which interiors were remodeled every six years, setting it apart from competitors like K-Mart and Zayre's.  Of course, this only lasted so long; by the late 1980s, that practice had ended.

Colorful displays and modern storefronts were also important brand signatures.  Caldor management innovated the employee experience by creating an executive development program and other employee training classes to ensure a knowledgeable, well-trained staff in retail operations and customer service.  

Keeping the "community hub" feel, Caldor became well-known as an anchor store.  This meant other stores and businesses were eager to open locations in the same shopping plazas and malls (a booming shopping trend of the 1980s).  

Bright and colorful weekly circulars were popular in local Sunday newspapers, and the annual "Toy Book" catalogs were quickly thumbed through by children of all ages as the Christmas holiday season approached.  

Personal anecdotes from former employees highlight Caldor’s workplace culture.  A Reddit user who worked at the Malden, Massachusetts, store from 1987 to 1989 recalled the frenzy when Nintendo consoles first hit shelves, with customers lining up before opening.  Another employee from the Northampton, Massachusetts, store (1970–1973) remembered the jingle (“Shopping at Caldor is always a pleasure...where the quality is always fine!”) and the laborious process of ringing up purchases on manual cash registers.  These stories underscore Caldor’s role as a bustling retail destination and an enjoyable workplace for many.

Despite its success, Caldor faced mounting challenges as the 80s turned into the 90s.  

In 1986, ADG was acquired by May Department Stores for $2.2 billion, one of the largest retail mergers at the time.  As the economy faltered in the late 80s, May Department Stores began cost-cutting measures, which strained Caldor’s operations.  

During 1989, May Department Stores sold Caldor to Odyssey Partners and Donaldson, Lufkin & Jenrette for $500 million plus debt assumptions.  Caldor went public again in 1991, reducing its debt and acquiring six stores from the failed Alexander’s chain in 1992.

An absolutely rare find on Reddit from the early 2000s:  A leftover Caldor trailer

When the new owners took control of Caldor, they unveiled a new corporate branding: goodbye, brown and orange rainbow; hello, generic red and white logo.  The rainbow itself was only introduced in 1971, but it was easily the brand's most iconic feature.

By the mid-1990s, Caldor was the fourth-largest discount chain in the U.S., with $2.5 billion in annual sales.  However, fierce competition from rapidly expanding national giants like Walmart and Target eroded Caldor’s market share.  

Regional competitors like Bradlees were also struggling and resorted to cheaper merchandise and deep discounts, placing further pressure on Caldor's margins.   

In September 1995, Caldor filed for Chapter 11 bankruptcy, citing a “difficult retail environment” and weakened rivals.  At the time, it had $1.2 billion in assets and $883 million in liabilities.

Caldor attempted to reorganize, closing 12 underperforming stores in 1996 (and 2 more in 1997) before merging from bankruptcy in 1998.  

However, a critical blow came that year when a weekly ad mistakenly listed items at incorrect prices, costing the company millions in losses.  Unable to recover or negotiate with creditors, Caldor filed for Chapter 7 bankruptcy in January 1999.  It announced it would liquidate all 145 stores, and by May 15, 1999, the last Caldor store closed for good, leaving behind 20,000 employees and a large void in northeastern discount retail.  

The closure of Caldor marked the end of an era, but its legacy endures through internet nostalgia.  For many, Caldor was more than a store.  It was a cultural touchstone.  Shoppers recall vibrant aisles of affordable brand-name goods and the excitement of visiting Caldor during the holiday shopping season.  

A Caldor during its final days

A Reddit thread on r/Xennials captures this sentiment, with users reminiscing about furnishing their first apartments with clearance items from Caldor’s final days or buying trendy clothes that rivaled Macy’s.  Another user on r/nostalgia shared a 1990 video of the Northampton, Massachusetts, store, sparking a large conversation about the “day-to-day lives of average people," and how Caldor was a constant, preserved in such footage.

Former employees still cherish their time at Caldor in posts on Reddit.  A user on r/CrappyRedesigns, who worked at the Malden store, recalled wearing “ugly brown smocks” and the rainbow logo that defined Caldor’s branding until a controversial redesign.  On X/Twitter, BrightSunFilms noted that Caldor was “beloved by so many” in the Northeast during its 1960s–1980s heyday, reflecting its emotional resonance.  Retro t-shirts featuring Caldor’s logo, sold by companies like Bygone Brand and Nostalgic Brand Apparel, are popular among those seeking to relive the past, with Amazon reviews describing strangers stopping wearers to share their own memories.

Caldor’s physical remnants are scarce, as most stores were repurposed into Walmart, Kohl’s, or Home Depot locations.  Yet, its digital footprint thrives.  The Caldor Rainbow blog meticulously documents former store locations, while deadmalls.com, created by former Caldor employee Brian Florence, preserves the retail chain's history. 

A relaunched Caldor.com emerged as an online retailer, aiming to “rediscover the treasures you loved back in the day” with new deals, though it lacks the brick-and-mortar charm of the original.

Caldor’s rise and fall offer lessons in retail’s unforgiving nature.  What was once successful through innovation could not adapt to the big-box and digital world, ultimately leading to its demise.  One article on Medium noted that Caldor’s story is a “cautionary tale” of the need to stay current on consumer preferences and competitive pressures.  

Caldor was more than a discount chain; it was a community cornerstone, a workplace for thousands, and a symbol of a bygone retail era.  From its humble beginnings in 1951 to its liquidation in 1999, Caldor shaped the Northeast’s shopping culture with its blend of quality, value, and style.  Today, its memory lives on in nostalgic stories, retro merchandise, and online tributes, reminding us of a time when shopping at Caldor was “always a pleasure.”