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Richway was launched in 1968 as the discount division of Atlanta-based department store Rich's; and was acquired with Rich's by Federated Department Stores in 1986; being combined with Federated's pre-existing Gold Circle chain. Soon after, the struggling Federated sold the chain to Kimco; who then sold it to Dayton Hudson Corporation, which quickly closed the Richway and Gold Circle chains in favor of Target by late 1988.