After a challenging few years, outdoor retailers and brands know they must evolve in ways that fit firmly within their DNA, and meet the demand of fickle and value-oriented consumers.
“Due to tariffs and now the Middle East conflict, consumer sentiment is declining and it is at the lowest level right now,” said Coresight Research analyst Aditya Kaushik, adding that apparel and fashion are among the discretionary categories consumers pull back on first. “We are in quite a challenging phase right now, and we expect the next quarter for outdoor retailers will see a decline in revenues or, at most, flat growth.”
Looking at where gas prices are headed and tracking the price of Brent crude oil, as well as noting core inflation’s two-to-three-month lag time, Kaushik predicted that sales could improve later in the second half of 2026.
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In addition to experiential retail options, Kaushik said price is the best way to get consumers into stores. And outdoor stores have tools to reach their best customers, such as special events and promotions offered only to loyalty members.
Experience Factor
REI Co-op — which narrowed its loss in 2025 and reported an increase in full-price selling — is emphasizing experience via its Peak 28 plan, revealed last September. The strategy centers on inspiring outdoor adventure and discovery for customers through both product assortment and elevation of services and experiences in-store and online.
When it comes to product innovation, the retailer, which now counts 26 million rewards members, continues to invest in circular textile innovation through an agreement with Ambercycle that would scale performance materials from existing textiles instead of virgin polyester.
“We’re seeing clear signs that our plan is working, strengthening the business now and shaping a stronger future for the co-op,” said REI president and chief executive officer Mary Beth Laughton.
Dick’s Sporting Goods also continues to reposition and elevate its store portfolio as it builds the experiential House of Sport and Field House concepts. The larger House of Sport locations, which typically span more than 100,000 square feet, include experiences such as a climbing wall, multiple golf bays with TrackMan simulators and a multisport cage that can be used for baseball, softball, lacrosse, soccer and field hockey. The company plans to have as many as 75 to 100 House of Sport locations by the end of fiscal year 2027.
At Academy Sports & Outdoors, the retailer is looking to two of the biggest events of the summer — the FIFA World Cup that kicks off across North America in June and America’s 250th anniversary in July — to drive growth and customer engagement.
The retailer is targeting suburban store locations for growth as it builds communities in local areas where family members engage in different sports activities. That multigeneration focus has also helped Academy build its loyalty program. Matt McCabe, executive vice president and chief merchandising officer, said in an interview that the retailer has enrolled over 13 million members in just 18 months.
“It’s about 30 percent of our total customer file, but [these shoppers] represent 45 percent of our sales. The customer who engages in our loyalty program really punches above their weight when it comes to activity in the store,” McCabe said.
Beyond focusing on better serving its core consumer, Backcountry is ramping up its focus on brand relationships. The specialty retailer has created an incubator platform called Backcountry Garage to help startup founders accelerate growth of their brands.
“We believe constant innovation is the most powerful way to improve our customers’ experience outside,” said president Kevin Lenau. “Backcountry Garage is how we keep pushing when much of the industry is waiting — partnering with builders and founders who are rethinking how great gear should perform so our community feels the difference every day on the trail, at the crag and in their own backyards.”
The Brand Equation
For brands, staying in tune with their consumers often comes down to creating product that can deliver on both performance and comfort.
At Arc’teryx, that requires addressing technical components and consumer and athletic feedback.
“Footwear innovation starts with solving real problems in mountain environments. Performance remains the primary filter. Every decision around materials, construction, fit, traction, protection and weight is evaluated through the lens of how the product will perform in demanding conditions,” said Renée Augustine, Arc’teryx’s general manager of footwear. And while styling is important, it is part of the functional design choice and is not the starting point.
“Consumer and athlete feedback also play a significant role in shaping development priorities,” Augustine added. “The brand gathers insights from mountain athletes, guides, product testers, retail teams and guests to understand where friction points exist, whether that’s fit consistency, long-distance comfort, stability, weather protection or versatility across terrain. Those insights help inform where the team focuses its innovation efforts.”
Similarly, Nike Inc.’s ACG (All Conditions Gear) collection — relaunched in February — is focused on the outdoor athlete who runs and hikes in the wild, where terrain conditions vary.
Mark Garonzik, ACG North America general manager, said his team looks at solutions to fit varying surface conditions, such as wet or dry, smooth or flat, rough or hilly — with each having different requirements for traction, stability and comfort.
From trail running to road running, the design of the midsole is top of mind.
“Is it stable enough? Nimble enough? Do you want more ground feel? Do you want less ground feel as you go up and down hills? Where are you experiencing the most strain on your body and on your joints? And how can we engineer a solution to the shoe that helps maximize the performance while minimizing the impact to your body and the wear and tear to your muscles and joints,” Garonzik said.
One recent launch is the ACG Pegasus Trail, which builds on the popular Nike Pegasus shoe, but adds trail-specific innovations not found in the regular Pegasus style. Those additions include the ability to transition from pavement to gravel roads and trails, helped by a bed of ReactX foam for responsive energy return and a new outsole for improved traction.
Loren Morshead, head of sales and marketing for Olberap Group — which owns mountain brands Salewa and Dynafit, as well as rock climbing label Evolv — said that while performance continues to be a high priority, consumer preferences have also moved toward comfort and durability.
Morshead said their innovations span from the sock liner in the shoe to the shape of the upper to the feel of the midsole and outsole.
Additional elements depend on the brand, such as good grip ability for mountain running in Dynafit, where security and performance is critical for running on peaks. Adjustments for technical performance are important at Evolv, where the “foot is designed to be downturned to be pushing on very little holds” in rock climbing.
Trade Show Plans
As brands and retailers look for new ways to innovate in a tough climate, trade show organizers are also meeting the moment.
Trade show operator Outdoor Retailer (OR), taking place in Minneapolis on Aug. 19-21, is in the midst of reinventing itself to better connect with outdoor industry stakeholders.
Lindsay Hubley, senior vice president of the sports and outdoor division at parent firm Emerald, said OR is “intentionally reimagining” what a trade show looks like today to reflect where the outdoor sector is headed.
This summer’s trade event is redefining product interaction through “Urban Outdoor Experiences,” which includes real-world environments such as hiking, climbing, running and water-based experiences in the host city, so “attendees and buyers can engage with products in the conditions they were designed for,” Hubley said.
Source: WWD
