Dive Brief:
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As part of an operations overhaul that has entailed laying off hundreds of employees in the last year, REI is following through on expansion plans announced in January. The outdoor retailer said last week that by the end of the year it will have opened 10 stores and expanded one.
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The retailer plans six new stores next year and at least two in 2026, plus investments in its current fleet to improve the workplace and customer experience, per a company press release. The company previously said it would open two in 2025.
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Last year the coop retailer’s net sales fell 2.4% year over year to $3.8 billion, and net loss nearly doubled to $311.1 million, according to its most recent financial statement, released in April.
Dive Insight:
The outdoor category is reckoning with a slowdown after a pandemic-related boom. Orvis recently announced layoffs and the discontinuation of its popular catalog, for example, and Eastern Mountain Sports was just acquired during its bankruptcy.
But other players are doing well, according to recently released Circana research. Earlier this year L.L. Bean, where sales also dropped slightly versus last year, announced a brick-and-mortar expansion that, like REI’s, is designed to stoke growth.
In a statement last week, REI stores chief Mary-Farrell Tarbox said the company is carefully selecting its spots. Next spring and summer new stores will open in Carlsbad, Chico and Elk Grove in California; Amherst, New York, near Buffalo; Durango, Colorado; and Lynnwood, Washington. In 2026, plans are for a store in St. George, Utah, and another in Prosper, Texas.
"Cities that will have new stores represent communities that serve as a gateway to some of the country's most incredible natural places and where our members currently live or destinations where they love to play outside,” she said.
Each store will have a full-service bike shop and those in Amherst, Durango, and Lynnwood will also operate seasonal ski and snowboard shops; REI members get 20% discount on bike and snow shop services, with some exclusions, per the release.
REI is building up its fleet at a time of turmoil at some of its locations. Last year unionized employees staged a walkout at a number of stores and filed formal complaints over what they said were unfair labor practices. The coop vowed to fight that, in a move that some marketing experts said could put its progressive reputation at risk.
"Our store employees are the heart of the co-op, and they welcome everyone to experience our product expertise, resources and inspiration in support of an active lifestyle," Tarbox said.
