Outdoor Retail Is Undergoing Its Own Boom and Bust Cycle

October 8, 2025

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.

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. WWD