What's Happening?
REI Co-op has announced plans to close its store located in Paramus, New Jersey, during the first quarter of 2026. This decision is part of a broader strategy that includes closing additional stores in the SoHo neighborhood of New York City and Boston later in the year. The closures come in response to a reported 6.2% revenue decline in 2024, following a 2.4% drop in 2023. REI operates 195 stores nationwide, including 193 REI stores and two REI Re/Supply stores. The Paramus store, which opened in August 2011, is situated in the Bergen Town Center shopping center. REI expressed gratitude to its teams, members, and customers for their support over the years and emphasized the need to adapt to evolving market conditions to ensure long-term success.
Why It's Important?
The closure of REI stores in major urban areas like Paramus, SoHo, and Boston highlights the challenges faced by brick-and-mortar retailers in adapting to changing consumer behaviors and market conditions. This move may impact local economies, particularly in areas where these stores have been significant retail anchors. The decision reflects broader trends in the retail industry, where companies are increasingly reevaluating their physical presence in favor of digital strategies. The closures could lead to job losses and affect local communities that rely on these stores for employment and economic activity. Additionally, REI's decision underscores the importance of strategic adaptation in the face of declining sales and shifting consumer preferences.
What's Next?
REI plans to continue serving its members and customers at the affected locations until their closure. The company will likely focus on strengthening its remaining stores and enhancing its online presence to better meet evolving customer needs. As REI adapts its business model, it may explore new strategies to engage with its customer base, potentially through expanded digital offerings or new store formats. The closures may prompt other retailers to reassess their own strategies in response to similar market pressures. Local communities and stakeholders may seek ways to mitigate the economic impact of these closures, possibly through initiatives to attract new businesses or support affected workers.
