REI to Close Iconic SoHo Flagship Store Amid Financial Struggles
Iconic adventure gear retailer to close flagship store as retail bloodbath spreads
Image: Mail Online
REI is set to close its flagship store in SoHo, New York City, on July 23, resulting in 72 layoffs. This closure follows a trend of declining revenues and increased competition, as the retailer faces challenges in adapting to changing consumer habits and rising operational costs.
- 01The SoHo store, located in the historic Puck Building, spans 35,000 square feet and has been a key retail destination for outdoor enthusiasts.
- 02REI has reported consecutive revenue declines of 2.4% in 2023 and 6.2% in 2024, prompting the closure of several underperforming locations.
- 03The store's closure is significant as it was one of the few REI locations to unionize, reflecting ongoing labor tensions within the company.
- 04Current CEO Mary Beth Laughton is focused on stabilizing finances and expanding digital sales to combat financial pressures.
- 05The closure leaves a gap in Manhattan's outdoor retail scene, particularly for serious outdoor enthusiasts seeking specialized gear.
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REI, the outdoor retail giant, will close its flagship store in SoHo, New York City, on July 23, resulting in 72 layoffs. This 35,000-square-foot location, housed in the historic Puck Building, has been a staple for outdoor enthusiasts in Manhattan, allowing customers to test gear before embarking on adventures. The closure is part of a broader trend, as REI has faced back-to-back revenue declines of 2.4% in 2023 and 6.2% in 2024, alongside increased competition from online retailers and changing consumer habits post-pandemic. Despite its strong brand, REI has struggled with rising operating costs and inflation. The SoHo store was also notable for being one of 11 REI locations to unionize, highlighting ongoing labor disputes within the company. Current CEO Mary Beth Laughton, who joined in March 2024, is working to stabilize the company's finances and expand digital sales. The impending closure leaves a significant gap in the outdoor retail market in New York City, especially for serious backpackers and climbers.
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The closure of the SoHo store will eliminate 72 jobs and reduce access to specialized outdoor gear for local enthusiasts.
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