Full Breakdown
REI Announces Closure of Its Only New York City Store Amid Financial Struggles
10/10/2025, 8:43:28 PM
Overview of Store Closures
REI Co-op has confirmed plans to close its only New York City location in SoHo, along with its stores in Boston and Paramus, New Jersey, by late 2026. This decision comes as part of a broader strategy to address declining sales, which have decreased from $3.85 billion in 2022 to $3.53 billion in 2024. The SoHo store, located in the historic Puck Building, has been a significant site for REI since its opening in 2011, representing a major restoration project.
Financial Context
The closures are attributed to ongoing financial challenges faced by REI. The retailer reported a 6.2% revenue decline in 2024, following a 2.4% drop in 2023. In January 2024, REI announced layoffs affecting over 400 employees and the discontinuation of its adventure tourism packages. The company has stated that it must adapt to evolving market conditions and customer needs to ensure long-term success.
Employee Impact and Union Relations
The impending closures affect several unionized locations, including the SoHo and Boston stores, which are among 11 REI locations that have recently unionized. The REI Union has expressed concern over the closures, seeking more information to understand the decision and hoping to secure severance and transfer rights for impacted workers. REI has indicated that employees can apply for positions at other stores, but details regarding severance packages remain unclear.
Customer Reactions
The announcement of the SoHo store's closure has elicited disappointment from customers. Queens resident Maria Null, who frequented the store, emphasized the importance of in-person shopping for making informed purchases. Another customer, Ogden Pheim, noted the store's large size and associated costs as potential factors in the closure decision.
Official Statements
In a statement, REI emphasized its gratitude towards its teams and customers, stating, “As markets and customer needs evolve, we must adapt to position the co-op for long-term success.” The company plans to continue serving customers at the remaining locations until the closures take effect.
What's Next
As REI moves forward with its strategic plan, dubbed "Peak 28: Ascending Together," the retailer aims to regain growth by focusing on building consumer trust, enhancing product offerings, and revamping its membership program. The closures of the SoHo, Boston, and Paramus stores mark a significant shift in REI's operational strategy as it seeks to navigate the challenges facing the outdoor retail industry.
Verbatim Quotes
- “I like to come into the store and try things on. Everything’s always an investment,” — Maria Null, Customer
- “It’s kind of a big space. It’s probably really expensive.” — Ogden Pheim, Customer
- “In a statement to NJBIZ, an REI spokesperson said, “We are deeply grateful to our teams, our members and customers, and the stores’ communities for their support over the years.” — REI Spokesperson
Conflicting Reports & Gaps
While REI has cited business factors for the closures, the union representing employees has raised concerns about the impact of unionization on the decision-making process. Further clarity on severance and transfer opportunities for affected workers is still pending.
