Outdoor retail giant REI Co-op is set to shutter its Santa Monica location by the end of this month, marking its second departure from a bustling downtown area in February alone, the Los Angeles Times reported. The move follows the closure of its downtown Portland store earlier this month.
In a strategic shift, REI has opted to focus on suburban expansion, with plans to open stores in more suburban areas adjacent to these urban closures. This includes a location in Marina del Rey, which debuted last summer, and another in Beaverton, a Portland suburb, scheduled to open this spring.
The closure of the Santa Monica outlet, which is situated at 402 Santa Monica Blvd. and has been operational since 2006, deals a blow to one of the coastal city’s prominent shopping districts, which has been striving to regain traction after facing challenges in recent years, exacerbated by the impacts of the COVID-19 pandemic. Critics have pointed to issues of public safety and homelessness, though opinions vary on the severity of these concerns.
REI has not provided immediate clarification on the reasons behind the Santa Monica closure. However, in the case of the Portland closure, the company cited a surge in break-ins and thefts, marking the highest incidents in two decades, despite efforts to enhance security.
The retailer’s decision underscores a broader trend of businesses reassessing their presence in urban hubs amid evolving economic and social dynamics. While REI stated no immediate plans to return to downtown Portland, it has directed customers to nearby suburban locations. The Santa Monica store will close its doors for the final time at 6 p.m. on Feb. 29, its website shows.
