Be-dazzled means Be-wildered

In November 2008 I paid for two personalized, time sensitive baby items. At the time the store accepted my payment for these items I was told that the items would be sent to my relative. By chance, I was talking to a family member today who told me that my relative never recieved these baby items. I contacted the store twice by email and twice by phone only to be told that they did not know when one of the items would be available, let alone, ship. The store never contacted me during the 11 week period to let me konw that the items I paid for had not been sent. This is theft! I am not looking for a reimbursement (obviously this is expected) I am looking for an explaination as to what kind of business excepts payments for items and never sends them. How is this legal?