The Real Reason REI Is Closing Some Stores In 2026

Though shopping online for adventure gear is convenient, sometimes you just can't beat checking out the gear in-store, in person. One of the best outdoor gear retailers, Recreational Equipment, Inc., (REI) has nearly 200 locations in the United States offering the chance to peruse gear before you purchase it. Though the company opened or relocated a half-dozen new stores in 2025 and opened its Prosper, Texas store in March, 2026, it announced plans to close 2 stores this year following the shuttering of its Paramus, NJ store location in early January. The company's Boston store and its flagship SoHo New York City store are slated to close in late 2026. The SoHo location opened in the historic Puck building in 2011. The company had originally planned to open even more stores in 2026, but pivoted due to declining sales between 2023 and 2024, and a reported net loss of more than $156 million in 2024.

"As markets and customer needs evolve, we must adapt to position the co-op for long-term success," notes an REI statement sent to publications such as Retail Dive and USA Today. Declining sales and a profit loss are largely responsible for the company's decision to cut back, riding the wave of declining consumer demand in a post-pandemic world.

During the pandemic, outdoor activities appealed even to those who had never tried tent camping or rock climbing before. Many people purchased gear during that time, and flooded campgrounds and national parks. Once people chose the best backpack for their hikes and collected the basic gear needed to start skiing, consumer spending declined: Not every pandemic purchaser became an enthusiast of the outdoor activities and gear they tried one time.

REI isn't the only retailer of its kind facing cutbacks. Orvis, which has more than 70 shops in the U.S., plans to reduce that number to 33, due largely to an "unprecedented tariff landscape," noted Orvis president Simon Perkins in an article on Retail Dive. Patagonia had a small round of layoffs in 2024 following a corporate restructure. Eddie Bauer filed for chapter 11 bankruptcy protection in 2026, and is closing stores. Next Adventure and Big Five Sports are also closing stores, and many East Mountain Sports stores have closed or will close soon after a bankruptcy filing by its parent company.

All that said, the outdoor industry is still a significant economic force. In a 2024 report, The Outdoor Recreation Roundtable reported that outdoor recreation in the U.S. alone was a record $1.2 trillion dollar business in 2023. While there may be some cooling, National Parks campsites still need to be booked months in advance, and Hawaii beaches are overcrowded. "The last few years have been challenging," said REI president and CEO Mary Beth Laughton in a news release. "Not just for REI, but for the greater outdoor industry. And yet I remain hopeful."