A year ago, outdoor retailer REI Co-op was touting its expansion plans. Now the chain plans to close three high-profile stores in New York, Boston and Paramus, New Jersey, next year.
The Sumner, Washington-based chain on Monday confirmed that it’s closing up shop in the landmark Puck Building at 295-309 Lafayette St. in Manhattan’s SoHo neighborhood; 401 Park Drive near Fenway Park in Boston; and 2200 Bergen Town Center in Paramus.
“After thoughtful consideration, we have made the difficult decision to close our Paramus” store in the first quarter next year, REI said in a statement. The Boston and SoHo stores will go dark in late 2026, according to the company. It now operates 195 stores.
The planned closures come amid declining demand for outdoor goods in the wake of the pandemic, along with weakening discretionary spending trends among consumers.
REI is now the second U.S. outdoor retailer within about a week to say it’s closing retail locations. Last week, iconic outdoor retailer Orvis, based in Sunderland, Vermont, unveiled plans to downsize its fleet by about 50%, with 36 stores set to be closed. In addition, Eddie Bauer shut several stores this year.
“As markets and customer needs evolve, we must adapt to position the co-op for long-term success,” REI said. “We will continue serving members and customers at these locations until closing, and at our other stores across the New York and Boston regions.”
Industry headwinds
The outdoor gear-and-apparel sector has been plagued with challenges, according to retail analysts. During the pandemic, new shoppers came to these specialty retailers for equipment as they engaged for the first time in outdoor pursuits like hiking and camping. But they have that gear now and don’t need anymore. And in a headwind that many retailers face, consumers have pulled back on discretionary spending as prices for essentials like groceries rise.
REI hasn’t been immune from those problems. In May, the retailer reported it generated $3.53 billion in revenue in 2024, a 6.2% decrease from the prior year. It posted a $156.4 million net loss in 2024.
The REI store in the Puck Building, owned by Kushner Cos., is 39,500 square feet, according to CoStar data.
The location in Boston at the Alexandria Center for Life Science, a campus half a mile from the Red Sox home Fenway Park, is about 26,000 square feet, according to CoStar data.
The owner of the site of the Paramus REI store, Urban Edge Properties, in June sold the property for $25 million to Russo Development, according to CoStar data. Russo plans to build a multifamily complex on the parcel, once part of the Bergen Town Center mall. The store is roughly 44,000 square feet, according to CoStar.
REI has also taken other cost-saving measures. In January, it closed its Experiences division, which offered adventure travel, day trips and classes. Then in February, REI sold four warehouses for $230 million in a sale-leaseback deal.
In October last year, REI outlined its expansion plans for 2025. The retailer said it did open four of the planned stores: in Amherst, New York; Chico and Elk Grove, California; and Durango, Colorado. Openings in Carlsbad, California, and Lynnwood, Washington, were store relocations.