Dive Brief:
- REI is closing three stores in 2026, the company confirmed to Retail Dive.
- A store in Paramus, New Jersey, will shutter in Q1 next year. Two stores — in New York City’s SoHo neighborhood and Boston — will close in late 2026.
- “As markets and customer needs evolve, we must adapt to position the co-op for long-term success,” REI said in a statement to Retail Dive. “We will continue serving members and customers at these locations until closing, and at our other stores across the New York and Boston regions.”
Dive Insight:
After “thoughtful consideration,” REI is shuttering three locations in major metropolitan areas as it looks to regain profitability.
“We are deeply grateful to our teams, our members and customers, and the stores’ communities for their support over the years,” the outdoors retailer said.
It’s not the only one in the outdoors space running into challenges after a pandemic-era boom. Orvis earlier this month confirmed it planned to shutter 31 stores and five outlet locations early next year. That retailer, alongside Patagonia, both turned to layoffs last year.
REI’s announcement comes just weeks after CEO Mary Beth Laughton, who joined the retailer in February, laid out a new strategic plan for the co-op. She outlined four key pillars that the outdoors retailer would work toward, including an updated membership program, elevated services and experiences, an improved assortment and a purpose-led culture.
REI has already been through several years of upheaval, including a store operations overhaul, multiple rounds of layoffs at its corporate headquarters and a decision to shutter its experiences business earlier this year. Underpinning it all has been the need to return REI to profitability.
In the co-op’s most recent fiscal year, REI reported sales fell 6.2% to $3.53 billion. The retailer also saw a net loss of $156.4 million in 2024, which the company attributed to member rewards, social giving efforts and employee costs like bonuses and retirement contributions.
Even with the tumultuous spate of layoffs and declining sales in recent years, REI has continued to expand its store fleet. Last year, the retailer opened 10 stores and expanded one. This year, the company had planned to open six new stores, with at least two slated for 2026.
“The last few years have been challenging, not just for REI but for the greater outdoor industry,” Laughton said in a statement tied to earnings. “And yet I remain hopeful. The co-op is a special place made up of 14,000 passionate employees and 25 million members united by a shared sense of purpose.”