Outdoor retail giant REI is closing its iconic SoHo flagship store in New York City, marking another major shake-up for the longtime camping and outdoor gear retailer. The company's massive 35,000-square-foot location inside the historic Puck Building is expected to shut its doors on July 23, according to a Department of Labor filing. The closure will reportedly result in 72 layoffs during the height of the summer camping season.
Financial Struggles and Store Closures
Seattle-based REI, known for its premium camping gear, bikes, and hiking boots, has reported back-to-back revenue declines of 2.4 percent in 2023 and another 6.2 percent in 2024. It has also had to shutter several underperforming locations in recent years, including all of its Portland, Oregon, stores after a surge in retail theft. The SoHo store has long served as a destination for outdoor enthusiasts in Manhattan, where shoppers could test and try on outdoor gear before heading out on weekend adventures.
Unionization and Labor Tensions
Its closure also carries added significance because the location was one of 11 REI stores across the US to unionize in recent years amid growing labor tensions inside the company. Founded in Seattle in 1938 by a group of mountaineering friends, REI - short for Recreational Equipment, Inc. - began as a small co-op selling ice axes and climbing gear to outdoor enthusiasts. Over the decades, the retailer grew into one of America's most recognizable outdoor brands, known for its camping equipment, hiking apparel, bicycles, and annual member sales.
New Leadership and Financial Pressure
Current REI CEO Mary Beth Laughton joined the company in March 2024 after previously serving as an executive at Nike, Athleta, and Sephora. Since taking over, Laughton has focused on stabilizing REI's finances, expanding digital sales, cutting costs, and trying to rebuild profitability after several difficult years. Today, REI operates more than 180 stores across the US and has millions of co-op members nationwide. But despite its strong brand recognition, the retailer has faced mounting financial pressure in recent years as inflation, slowing consumer spending, rising operating costs, and increased competition from online retailers weigh on sales.
Changing Shopping Habits and Industry Challenges
Like many retailers, REI has also struggled with changing shopping habits following the pandemic-era outdoor boom, when camping and hiking surged in popularity before demand cooled. Industry analysts say high urban rents and labor costs have made large flagship stores especially difficult to sustain. The closure announcement also comes amid ongoing labor disputes between REI and unionized employees. The retailer's annual Memorial Day sale - one of its biggest shopping events of the year - recently faced boycott calls from the REI union, which urged co-op members not to shop during the promotion.
Impact on New York Outdoor Enthusiasts
For New York outdoor enthusiasts, the shutdown leaves a major gap in the city's outdoor retail scene. The SoHo flagship was widely considered one of the few places in Manhattan where serious backpackers and climbers could browse specialized gear in person before investing in expensive equipment. Now, shoppers are preparing for what may be the store's final attraction: liquidation sales before the doors close for good.
