REI

REI. Founded in 1938 by mountaineers Lloyd Anderson and Mary Anderson, REI (Recreational Equipment, Inc.) is a prominent American retail cooperative specializing in outdoor recreation gear and apparel. Headquartered in Kent, Washington, it operates over 180 stores across the United States and is renowned for its member-owned structure, with millions of active co-op members. The company is a major force in promoting outdoor activities like hiking, camping, climbing, cycling, and paddlesports.

History

The company's origins trace to 1938 when Lloyd Anderson, frustrated with the quality of imported ice axes, partnered with his wife Mary Anderson and 21 fellow climbers to form a buying cooperative. They sourced reliable gear directly from European manufacturers like Austria's Stubai and began operations from their Seattle basement. A pivotal early moment was the 1955 move to a dedicated store on Seattle's Capitol Hill, which featured the first known recreational equipment rock climbing structure inside a retail space. Significant growth followed, including the 1968 relocation to a larger flagship store in the Seattle neighborhood of University District and a 1988 move to its current Kent headquarters. Key leadership under individuals like Jerry Horn and later CEOs such as Sally Jewell, who later served as United States Secretary of the Interior, and Eric Artz guided its national expansion. The co-op also established the REI Foundation to further its philanthropic goals.

Operations and business model

REI operates as a consumer cooperative, meaning customers can purchase a lifetime membership for a nominal fee, entitling them to annual patronage dividends based on their purchases and voting rights in company governance, including the election of its board of directors. This model distinguishes it from publicly traded competitors like Dick's Sporting Goods or The North Face's parent company VF Corporation. Its retail strategy includes a vast network of physical stores, a robust e-commerce platform, and experiential flagship locations such as the REI Seattle Flagship store and the REI Co-op Adventure Travel program. The company is also known for its major sales events, notably REI Co-op Member Rewards and the Black Friday-alternative Opt Outside campaign, where it closes stores and pays employees to enjoy the outdoors.

Products and services

REI's product assortment is comprehensive, covering gear and apparel for numerous outdoor activities. This includes specialized equipment for backpacking, camping from brands like MSR and The North Face, rock climbing and mountaineering gear from Petzl and Black Diamond Equipment, cycling accessories, and kayaking or standup paddleboarding equipment. A significant portion of its revenue comes from its private-label brands, such as REI Co-op apparel and gear, and the premium REI Co-op Cycles line. Beyond retail, services include outdoor classes and workshops through the REI Outdoor School, expert-led travel adventures via REI Adventures, and a highly regarded gear rental program for items like snowshoes and tents. The company also operates a full-service bicycle shop and ski shop within many locations.

Corporate social responsibility

REI maintains a strong commitment to environmental stewardship and corporate social responsibility. A cornerstone of this effort is the REI Cooperative Action Fund, a community-funded grant program supporting nonprofit organizations focused on equity in the outdoors. The co-op is a signatory to numerous climate action initiatives, aiming for carbon neutrality across its operations and has invested heavily in solar energy installations on its stores and distribution centers. It actively supports land conservation efforts through partnerships with groups like the National Forest Foundation and the Appalachian Trail Conservancy. Furthermore, REI promotes diversity, equity, and inclusion in outdoor spaces through grants and programs aimed at breaking down barriers to access for underrepresented communities.

Controversies and criticism

Despite its generally positive reputation, REI has faced several controversies. It has been criticized for the perceived gentrification of outdoor spaces and for not fully representing the diversity of the communities surrounding its stores. Labor relations have been a point of contention, with employees at locations like the SoHo store in New York City filing petitions with the National Labor Relations Board to unionize, citing concerns over wages and scheduling. The company's decision to cease selling certain brands, such as Garmin products in 2010 over a patent dispute, and more recently, items from Thule and CamelBak, has drawn mixed reactions from members. Additionally, some environmental advocates have questioned the sustainability of a business model inherently linked to consumerism and the production of new goods, even as the company promotes its used gear REI Re/Supply program and product stewardship initiatives. Category:Retail cooperatives Category:Outdoor recreation companies of the United States Category:Companies based in Seattle Category:Retail companies established in 1938