The covered windows and doors and the removal of almost every piece of evidence that suggested a mighty outdoor lifestyle outlet once stood at the now-shuttered site of the Santa Monica branch of REI reminds residents that there’s still a long way to go before our city has fully returned to the halcyon retail heyday of yesteryear.
What retailer is worthy of such an amazing venue? Located in the heart of Downtown, the two-story, 32,000 square foot site could be used for something really spectacular. Plus it would be really nice if whoever fills it also services those outdoor lifestyle needs, since we’re lucky enough to live in a part of the world where hiking, camping, climbing and appreciation of all things nature are available in abundance.
Sadly though, REI wasn’t the only store to have recently closed locally and in fact, store closures were a trend nationally. According to the National Retail Federation (NRF), plans to close stores soared to 4,070 last year, more than double the 1,680 closures in 2022. While US retailers announced plans to open 5,890 new stores, that number is a decrease from the 7,860 announced openings in 2022.
According to the NRF, this shift reflects a tougher consumer environment after two strong years aided by pandemic-related stimulus and savings. Despite a healthy labor market with low unemployment and wage growth, inflation ate into discretionary income, leading to a shift in spending from goods to services.
The Federation said some marginal retailers, previously supported by stimulus and landlord concessions during the pandemic, faced financial struggles. Retail bankruptcies tripled in 2023, including high-profile names like Rite Aid, Bed Bath & Beyond and Party City. Dollar stores, off-price retailers, discounters and warehouse clubs continued to dominate new store openings.
Store closures were widespread across retail, with companies like Bed Bath & Beyond, Tuesday Morning and Walgreens shuttering significant numbers of locations. Foot Locker and Rite Aid also announced substantial closure plans.
In Santa Monica, there has been a wave of closures across several retail zones including but not limited to the downtown area such as:
Interactive Cafe. What was once a sleek spot for organic juice blends, kombucha tea and honey shots along with build-your-own bowls at 215 Broadway has closed. There’s no news about what will fill this space or if the business is moving to a new location.
The Craftsman Bar and Kitchen. The vibe here was described as “gastropub plates and microbrews paired up in a rustic-chic setting by the sea with DJs and live music,” but this restaurant at 119 Broadway has also closed. Again, there’s no news about what will fill this space or if the business is moving to a new location.
Champs Sports. The sports equipment store at 1248 on the 3rd Street Promenade has shuttered. However, this is a retail chain, so it just means you’ll have to travel to Culver City should you want to pay a visit.
Bearfruit Jewelry. A favorite for many residents offering “well made jewelry at a moderate price” located at 395 Santa Monica Place shopping mall has closed. This is a small chain of retail outlets and currently the last two remaining are at Huntington Beach and Denver International Airport. There’s no news yet about whether or not another California branch will open.
Cult cafe. The one-of-a-kind airy, easygoing coffee shop that also offered pastries, burgers and sandwiches at 1460 on the 3rd Street Promenade has shuttered. “Due to a noticeable decline in business activity in our area and public safety concerns, we have made the difficult decision to close our doors,” said the restaurant on social media. However, its sister outlet, Lanea, a Mexican craft cocktail bar at 217 Broadway remains open.
Lotus Dim Sum Dumpling House. The website lists this outlet as “temporary closed” so we’ll just have to wait and see if this extremely popular eatery at 326 Wilshire Blvd ever opens again.
Philz Coffee. The popular coffee shop at 525 Santa Monica Blvd has a sign up informing customers that it’s closing in April. This is also a chain, with a number of outlets in the area, including Beverly Hills, Culver City, Hollywood and El Segundo. Moreover, their beans can be ordered online.
Del Frisco’s Grille. The steakhouse with arguably one of the most central locations in the city — 1551 Ocean Ave, virtually opposite the pier — has gone…and will be replaced by another steakhouse, Fogo de Chão. But Del Frisco’s is a chain, so if you’re really picky about your porterhouse, there’s another outlet in Irvine.
Notable recent closures outside DTSM include:
El Torito. Santa Monica’s long-standing Mexican restaurant at 3360 Ocean Park Blvd, has closed. Signage has been removed from the site and a sign posted in the doorway directs customers to visit locations in Marina Del Rey and Hawthorne.
Kalaveras. Also leaving the Mexican food business is Kalaveras. The eatery opened opposite the beloved El Cholo in 2022, but abandoned the space earlier this year. The location was previously home to Belcampo and no word on what might replace it.
LA Draught. This quaint dive bar at 3021 Lincoln Blvd has recently announced on social media that after four years it’s set to close at the end of the month. “You helped us navigate a global pandemic and survive even though we opened 30 days before. Customers became employees, customers became friends, and everyone became family,” the post says. It also says that the bar is closing “due to circumstances out of our control” and suggests that “LA Draught isn’t saying goodbye forever” so, fingers crossed.
“We have to be optimistic,” Mayor Phil Brock told the Daily Press. “Santa Monica has weathered so many storms in the past. And there are so many factors. Rent is still an issue after Covid and of course we’ve had security concerns. But, I think we have a handle on that now, we just need to let everyone know that.”
Credit: Scott Snowden
“Now we have to convince residents that it’s cleaner and safer and merchants too, if all they hear is doom and gloom, then it’s harder to persuade them to invest here. Plus of course, shopping habits have changed … I can’t lie, we still have issues and not all of the issues are of our making. And they’re hard to solve. But we can weather this storm too,” Brock said.
DTSM CEO Andrew Thomas also struck an optimistic tone.
“To me, the story about Downtown Santa Monica isn’t the businesses that come and go. This is a natural evolution occurring in every downtown,” he said. “I think our story is what is already happening in Downtown Santa Monica. Over $1B is currently invested in hotels, including the Ocean Avenue Project. 2,300 units of housing are either under construction, approved, or pending approval Downtown. We recently had an office building sell (1540 2nd Street) for $86.7M (77,000 sf). On top of this, the City is simplifying zoning and permitting rules to invite even more investment Downtown. I’m very optimistic about the future of Downtown and I think the investment speaks for itself.”