- REI will close three major Northeast stores in 2026 (SoHo, Boston, Paramus) as part of a strategic pivot amid declining sales.
- The closures reflect broader industry troubles—falling demand, tariffs, layoffs—and new CEO Mary Beth Laughton’s "Peak 28" turnaround plan.
The outdoor gear world took another hit this week as REI Co-op, the beloved Seattle-based cooperative that’s long been a staple for hikers, campers, and cyclists, confirmed plans to shutter three of its busiest Northeast stores in 2026.
The closures—targeting locations in New York City’s trendy SoHo neighborhood, Boston’s Fenway-adjacent flagship, and Paramus, New Jersey—come amid a broader slump in the industry, where post-pandemic enthusiasm for the great outdoors has faded into economic reality checks for retailers.
REI’s announcement, first detailed in a company statement earlier this month, underscores a painful pivot for the 25-million-member co-op.
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The Paramus store, tucked into the Bergen Town Center shopping complex since its 2011 opening, will close in the first quarter of 2026.
That leaves the SoHo location—a massive 35,000-square-foot space in the historic Puck Building that debuted the same year as REI’s New York City debut—and Boston’s 26,000-square-foot outpost near Fenway Park to follow suit by late 2026.
“After thoughtful consideration, we have made the difficult decision to close our Paramus, N.J. store in Q1 2026 and Boston, MA and SoHo, NYC, stores in late 2026,” the company said in its release.
REI emphasized that these spots will keep serving customers right up until the end, with nearby stores in the New York and Boston areas stepping in to fill the gap.
Why It’s a Gut Punch to the Retailer
It’s not just about the addresses; these are iconic hubs.
The SoHo store, for instance, has been more than a retail spot—it’s a three-story beacon in one of Manhattan’s priciest zip codes, drawing crowds for everything from climbing walls to gear demos.
Boston’s location, meanwhile, caters to a mix of urban adventurers and Red Sox fans looking to gear up for weekend escapes.
Losing them feels like a gut punch to locals who see REI as more than a shop—it’s a community anchor.
But the math doesn’t lie.
REI’s financials paint a stark picture: In 2024, the co-op posted a net loss of $156.4 million, with revenue dipping 6.2% to $3.53 billion from the year before.
That’s on top of a 2.4% drop in 2023, signaling a three-year slide that former CEO Eric Artz flagged early last year.
“Outdoor specialty retail has experienced four quarters of decline—and that trend has been worsening,” Artz told employees back then.
The co-op isn’t retreating entirely—it’s opened six new stores so far in 2025, including spots in Amherst, New York; Chico and Elk Grove, California; and Durango, Colorado.
Still, with 195 stores nationwide now (down to 192 after these cuts), the message is clear: Adapt or get left in the dust.
Official Statements from REI’s New CEO
New CEO Mary Beth Laughton, who stepped in this February, is framing the moves as part of a forward-looking strategy.
Just weeks before the closure news, she unveiled “Peak 28: Ascending Together,” a three-year plan aimed at “fundamentally transform[ing]” operations to reclaim REI’s edge.
“The last few years have been challenging, not just for REI but for the greater outdoor industry,” Laughton said in a statement.
The goal? Sharpen the membership perks that drew a million new sign-ups in 2024, boost digital sales, and zero in on what members really want amid shifting habits.
Complicating matters are the human stories behind the headlines.
Two of the closing stores—SoHo and Boston—are among REI’s 11 unionized locations, part of a wave that started with SoHo’s groundbreaking vote in March 2022.
Unions have accused the company of bad-faith bargaining in the past, filing dozens of complaints last year.
A UFCW Local 1445 spokesperson, representing Boston workers, told The Boston Globe they’re scrambling for details on severance and job placements.
REI insists the decisions stem from “business factors,” not labor issues: “As with any store closure, this decision was based on business factors, not on union activity.”
Laughton, who kicked off her tenure by apologizing for a controversial 2025 endorsement of a Trump administration pick, has been pushing to mend fences with the “Green Vests.”
“Let me be clear, signing that letter was a mistake,” she told Fortune in May.
The Outdoor Sector Faces New Challenges
But these closures could test that goodwill, especially as the co-op laid off over 400 staff earlier this year, including 180 full-timers from its now-defunct Experiences division—think guided trips and classes that served just 0.4% of customers.
REI’s woes aren’t isolated.
The outdoor sector, which exploded during the pandemic as folks traded gyms for trails, is now grappling with a hangover.
Demand for high-ticket items like tents and boots has cooled as inflation bites into discretionary spending, and consumers eye cheaper alternatives or stick to what they’ve got.
Tariffs under the Trump administration have jacked up costs for imported gear, hitting margins hard.
Just last week, Orvis—the 169-year-old fly-fishing and apparel chain—announced it’d close 31 retail stores and five outlets by early 2026 to “rescale the business.”
“Like many in retail, Orvis’ business model faced a sizable shift with the introduction of an unprecedented tariff landscape,” President Simon Perkins explained.
Other players are feeling the squeeze too. Liberated Brands, behind Volcom and Billabong, filed for bankruptcy in December 2024 and shut all U.S. stores, blaming “fast-fashion powerhouses” and rising rates.
Read: Why Companies File for Bankruptcy: A Step-by-Step Explanation
Smaller outfits like Portland’s Next Adventure are folding entirely by late 2025 due to economic headwinds and owner retirements.
Even REI’s own recent history includes the Santa Monica store’s February 2024 closure over skyrocketing costs and evolving local tastes, plus a short-lived Cambridge, Mass., spot that lasted under four years.
Expert Analysis and Retail Industry Data
Broader data from the Outdoor Industry Association shows U.S. outdoor retail sales down 3% to $27.5 billion in 2024, with overexpansion and inventory gluts adding fuel to the fire.
Analysts see this as part of a bigger retail reckoning.
Coresight Research projects 15,000 U.S. store closures in 2025—more than double 2024’s tally—as chains like Kohl’s and JCPenney trim footprints too.
“The outdoor business boomed during the [COVID-19] pandemic, helped by the free money,” notes industry watcher Matt Powell.
“Many in the industry thought the good times would go on forever, but they did not.”
Shifts in how people stay active—more marathons and hybrid races, less casual camping—aren’t helping either.
For REI members in the affected cities, the silver lining might be those other regional stores picking up slack, or a beefed-up online setup.
But as Laughton steers the co-op through this “Peak 28” climb, the question lingers: Can outdoor retail summit these challenges, or are we looking at a permanent chill in the sector?
One thing’s for sure—the trails will still be there, but stocking up just got a little harder.
Also Read: A Massive Convenience Store Now Closes 500 Stores
