REI is closing its Santa Monica store citing changing customer needs and an increase in the cost of doing business. Company officials said the store will not renew the lease on its downtown Santa Monica location and will close on Feb. 29, 2024.
“The decision to close was not made lightly, but after consideration to the positive impact of the store, our market presence, and external factors,” said spokeswoman Megan Behrbaum. “While Santa Monica remains a destination for locals and visitors alike, the needs of our customers and business have shifted over the nearly two decades that we’ve served this community. The overall operating environment has also changed and the cost to do business.”
The store has seen significant changes to the surrounding area in recent years. It was one of several stores looted during the riots of 2020 and while two people were arrested in that case, the store’s inventory was gutted. In addition, the nearby Parking Structure 3 was demolished last year to make way for a supportive housing project.
The company opened at the intersection of 4th and Santa Monica Blvd. in 2006 and replaced a Toys ‘R’ Us that had been at the same location. The two-story, 32,000 square foot store was the seventh for the company in Los Angeles and that number grew to 14 including a brand new location in Marina Del Rey that opened in September of this year. The Marina store is the 31st in the state. Aside from the Marina, REI has locations in Arcadia, Burbank, Manhattan Beach, Northridge, Laguna Hills and Woodland Hills.
“A Marina del Rey location will allow us to better serve REI members and others who live, work and visit the amazing coastal community,” said Steve Lochan, REI’s divisional vice president of retail in an announcement of the Marina store last year. “The store will be next to a path popular with those who enjoy time outside for fitness or relaxing in the sun on a waterfront patio or boat.”
The closure of the Santa Monica store coincides with other closures. The company will shutter its location in Fremont at about the same time and will also close a store in Portland in February.
The company said the Portland store was closing due to concerns over crime and security. The Fremont location was described as no longer being a good fit for the company due to missed sales targets and a high cost of operation.
Santa Monica officials said the closure was unfortunate but not disastrous for the area.
“We’re certainly sad to see any business make the tough decision to close a location in our city, but we understand that corporations must make tough choices all the time based on a number of factors,” said Santa Monica Communications and Public Information Manager Lauren Howland.
“While we hate to see a business close, we’re pleased with the level of economic investment and activity we’re seeing in downtown Santa Monica and throughout the city. We’ve made it easier to open a business here by updating our zoning codes and working closely with the business community to address issues such as public safety.”
She said Downtown has seen other signs of growth including the remodel of the Nike store, the pending reopening of Barnes + Noble and Din Tai Fung in the mall.
Founded in 1938, REI is the country’s largest consumer co-op. While anyone can shop at any location, members receive discounts on an annual basis. According to the company, there are 1.7 million REI members in the Los Angeles DMA and 4.6 million members in California.
“For 17 years, REI has proudly been part of the Santa Monica community serving our members and the outdoor community,” said Behrbaum. “We look forward to continuing to serve members and customers from our Santa Monica store through next February. REI has 13 stores in the LA region, including Marina del Rey that opened on September 8. We apologize for the future inconvenience to our members and the outdoor community.”
matt@smdp.com