REI Backtracks

Recreational Equipment Inc. (REI, Seattle) has announced the shuttering of its lone store in Japan as part of a strategy to concentrate on its U.S. operations.

The Tokyo store will close its doors by year's end, due to what the outdoor equipment retailer saw as waning interests in outdoor gear, increasingly cautious spending habits, a location too far from central Tokyo and recurring financial losses. “REI Japan succeeded in all ways except financial performance,” said ceo Dennis Madsen. “The shopping experience was exceptional, the staff fantastic and we created a new style of retailing in Japan.” Madsen emphasized that, by cutting the Tokyo losses, REI can further develop U.S. retail stores and web sites, emphasizing improved profitability and customer service.

REI operates 61 retail stores in the U.S. Each year, a portion of profits go to conservation and recreation causes.