The outdoor retail sector is undergoing a much-needed reset.

Changing consumer needs, especially among the younger demographic cohorts, have shifted how companies need to think about participation in outdoor sports activities. And tariffs and trade issues are impacting how specialty chains need to operate to stay relevant and maintain profitability.

The shift is global and far-reaching. Trade show groups have been grappling with how to adapt to the trend shift over the last few years, while retailers like REI and Orvis have revealed new store closings just this week. (REI’s move to close its Soho flagship, especially, generated a lot of conversation on Wednesday.)

“The outdoor business boomed during the [COVID-19] pandemic, helped by the free money,” noted Matt Powell, an analyst at Spurwink River. “Many in the industry thought the good times would go on forever, but they did not.”

One example cited by Powell of the go-go days is the big-ticket item that consumers bought during the pandemic, like a kayak, but who now don’t need a new one. Eventually, inventories backed up and then traffic slowed. “The weakened industry has had to cut back,” he said, adding that another problem with the outdoor specialty industry is that it “fails to be more inclusive.”

Other retailers, meanwhile, have moved in. “Big box is happy to sell to families, not elites,” Powell said.

Consumers’ shifting lifestyles

Consumers are changing how they are staying fit, according to a Summer 2025 report from Houlihan Lokey on “Fit for the Future: Trends Shaping Active Lifestyle, Fitness and Outdoor Markets.”

Group activities and high-endurance events are both seeing robust growth, with record participation in marathons and races and a new wave of athletes propelling hybrid competitions such as Hyrox that combines strength and cardio in a race format. The report said Gen Z and millennials seeking “purpose, challenge, and community” are particularly attracted to high endurance events that include marathons, trail runs, and obstacle races.

Moreover, secular trends also reflect changing consumer profiles. Young consumers are redefining outdoor engagement. Gen Z, with a 70 percent participation rate, is highly active, but in new ways. Their engagement is centered on informal, social formats that blend sport and entertainment, the study found.

“From urban play spaces to bowling and darts, this shift toward “competitive socializing” marks a generational change in how sports are experienced and consumer,” the report said. It noted that running and cycling clubs are booming because they offer inclusive spaces and turn workouts into social rituals among the Gen Z cohorts.

In addition, other shifts include more women participating in team sports, as well as the rise of active aging among those aged 55 and over. The recognition of a more active lifestyle among seniors — and their economic power — requires businesses to rethink product development, distribution and engagement strategies. Consumers in general are also moving from traditional sports to flexible social activities, such as pickleball, paddle tennis, and off-course golf.

And citing to a McKinsey survey of customer satisfaction touchpoints along the active lifestyle customer journey, the Houlihan Lokey report said that companies are increasingly shifting from direct-to-consumer back to omnichannel/wholesale distribution.

Tariff and trade impact on sourcing and stores

The impact of tariff uncertainty has brands rethinking their sourcing and supply chains, looking at what they need to do to become more efficient against the backdrop of an evolving trade environment.

For many outdoor specialty chains, that also has meant taking a closer look at their store base. In January, REI Co-op said that after nearly 40 years, it was shuttering its Experiences business. The reason cited at the time by then REI CEO Eric Artz was that the operation was unprofitable.

Former Nike executive Mary Beth Laughton was named CEO in March. Last month, she laid out a new three-year strategic plan call “Peak 28: Ascending Together” that outlines the specialty chain’s vision to be the “most trusted retailer for people who love the outdoors.” That includes building trust with customers, staying competitive and building emotional connections and loyalty while meeting the needs of consumers from beginners to experts. The four strategic pillars include becoming a high-performing, purpose-led organization, inspire outdoor adventure and discovery through authentic, culturally leading assortment mix, providing elevated service and experience and reinventing REI’s membership program.

The company’s website posted a condensed version of the memo Laughton sent to employees, where she also noted regarding efforts to strengthen the chain: “We’ll have to make tough choices as we do so, to allow us to focus on the efforts that set us up to grow and thrive.” The memo also noted that making the required shifts won’t be easy because it will require “us to fundamentally transform, make difficult choices and evolve the way we work over the next few years.”

The retailer said Tuesday it will close its Paramus, N.J., store in the first quarter of 2026, with its Boston, Mass., and its high profile 40,000 square-foot SoHo, N.Y., doors to follow in late 2026.

REI isn’t the only outdoor retailer shutting stores. Vermont-based Orvis is also shutting some locations. Plans call for the retailer to close 31 full-price stores and five outlets by early next year. Contributing in part to the decision to close some stores was the introduction of reciprocal tariffs, which forced the retailer to rethink its assortment mix and store base.

Not all outdoor retailers are closing stores, however. L.L. Bean will open a pop-up at 416 W. Broadway in Manhattan’s SoHo neighborhood on Oct. 18 for six weeks. On Friday, the retailer will open a store in Westlake, Ohio, with a store to follow next year in Twin Cities, Minn. The stores follow the two that opened this year, one in Bridgewater, N.J., at Chimney Rock Crossing in July and in Erie, Penn., on Peach St. in June.

Dick’s Sporting Goods last month opened its massive 85,000-square-foot House of Sport retail concept inside the Newport Centre shopping mall in Jersey City, N.J. In addition, the Katy, Tex.-based Academy Sports + Outdoors still plans to open a total of 20 to 25 new locations this fiscal year. It plans to open eight this fall, adding to the seven it already opened earlier this year.

The new locations should do well for the retailers, particularly if they feature new concepts or are in new marketing territories for the specialty chains.

“Newness always rules,” Powell said.

Two outdoor trade shows return in 2026

Outdoor Retailer’s annual business-to-business outdoor sports show is set to return next year at the Minneapolis Convention Center from Aug. 19-21.

The new reimagined trade show will include input from the Leadership Village, co-led by athlete and Summit Scholarship founder Sunny Stroeer and industry veteran Paul Gagner, as well as others who are experts in the outdoor space. The new show will see the revival of the Outdoor Industry Innovation Awards, as well as a focus on five key areas: Ascent for emerging brands; Camp Forward featuring start-up pitches and futurist keynotes; Campfire for storytelling and video content; Outdoor Lab for forward-thinking product design, and Industry Day for a full-day conference on actionable insights on AI, e-commerce, sustainability, and supply chain strategy.

“Over the past few months, we’ve engaged in thoughtful conversations across the outdoor community,” said Lindsay Hubley, senior vice president of Outdoor Retailer’s parent Emerald’s Sports and Outdoor Division. “Those insights are shaping every facet of this event. We’ve reinvented the show to reflect the dramatic changes the industry has endured, while creating a platform that amplifies innovation, collaboration, and growth.”

The European Outdoor Group (EOG) will also see its international trade show return next year from May 17-18 in Riva del Garda in Italy as part of a new initiative called European Outdoor Week. It too will include its outdoor awards ceremony and networking event. EOG said European Outdoor Week will finish with a new outdoor festival concept that will “provide trade and consumer visitors with an opportunity to test equipment during a range of activities involving key participating brands and leading outdoor athletes.”

According to the EOG, it paused its show this year to plan for a fresh approach for 2026, which now includes an alignment with the regional Outdoor and Running Business Days (ORBD). That will see EOG work closely with MagNet Srl SB, the owner and organizer of ORBD, because the two plan to share infrastructure and marketing platforms.

Despite the ups and downs in the broader industry, one trade show player has managed to become even more prominent. Switchback, which grew out of The Running Event, debuted as a standalone show in Nashville in June to strong reviews. It is already making plans for its next edition in New Orleans.