Alarm bells started ringing in Midwest Mountaineering owner Rod Johnson's head in May, when a usually reliable spring sales jump turned into a slump.
“We've lost money every month this year,” Johnson said. “When the July financial statement came out a few weeks ago, I thought it was time to throw in the towel and sadly close our doors.”
After 53 years in business, the iconic West Bank retailer will close in October. Johnson has seen sales decline over the past seven years as shopping styles changed, except at the height of the pandemic, when people turned to the outdoors for refuge.
High-volume retailers like Scheels, REI and Dick's Sporting Goods — plus direct sales from manufacturers — continue to outpace traditional local retailers like Midwest Mountaineering, Johnson said. His store also doesn't sell his products online, a popular option for customers who want products delivered to their door or just a quick in-store pickup.
In addition, costs have increased dramatically in recent years.
“A lot of our customers are over 50. They were our customers 20, 30, 40 years ago,” Johnson said. “We've tried really hard to get younger people more outdoors. You're competing with busy schedules that younger people have. You're competing with screen time. Online sales are a huge thing.”
Longtime customer Sean Foster said Midwest Mountaineering was more than just a shop.
“It was an institution in the Twin Cities where the same people could actually find equipment, find people, find events,” said Foster, director of marketing for the Bouldering Project gym in Minneapolis. “I think it will be a great loss for the Twin Cities.”
Other successful founder-led retailers in the Twin Cities have made visible transitions.
Bill Ribnick has closed his landmark Ribnick Luxury Outerwear in the North Loop to retire in 2021 and has sold the building. That same year, Larry Fratallone sold the Fratallone's Ace Hardware & Garden locations to Central Network Retail Group of Tennessee. Colorado's Vail Resorts purchased Hoigaard's in St. Louis Park in 2013 and kept the family name.
A year and a half ago, Johnson publicly searched for a general manager who could finally take the helm of the business. He said he found a strong manager in Carina Peterson, but that sales aren't strong enough to stay open. That's even after trying to cut hours to save the business and manage city-mandated wage increases that are necessary to retain workers in the face of labor shortages, Johnson said.
Peterson started in January after being a longtime customer.
“I've been working with Rod to possibly change the model or adapt to make changes, and he has a distinct style and method that has worked great in the past, and he wants to stick to that method all the way through,” he said. .
Johnson started his business downtown and said his store's current location near the University of Minnesota no longer draws customers, although it is in a highly visible corner spot off an Interstate 35 exit ramp at Cedar Avenue.
He informed his 40 employees Wednesday morning of the closing. When business was at its peak 15 years ago, his staff totaled 100.
If he were younger, Johnson said, he would try to move near an REI Suburban to create an outdoor shopping hub. At 74, he plans to sell his four West Bank buildings that house Midwest Mountaineering to apartment developers.
A sale begins September 1st and runs through October 8th as Midwest clears nearly $2 million in outdoor gear and apparel, 30% to 75% off.
Thrifty Outfitters, which sells clubs and half-price dealer samples, as well as the walking trails and BWCA Pint Night socials will operate there until the properties are sold. He also plans to continue presenting the world tour of the Banff Festival of Mountain Films in the U.
Meanwhile, Johnson is working on starting a non-profit organization focused on people being good to each other.
“It's something I can do,” he said, “to do my part to make the world a better place.”
