Fixing REI
Since moving to the Seattle area in 2006, REI has kept my family in Gore‑Tex, bikepacking propane canisters, and more jackets, boots, and gear than I can count. Their Seattle flagship is where my kids first rock‑climbed. Green‑vests have helped me pick out sleeping bags, bike racks, and far too many last‑minute gifts (sorry, honey).
REI has been woven into our Pacific Northwest life.
Which is why it’s hard to watch them risk joining Party City, Container Store, Bed Bath & Beyond, and others circling the drain.
Outgoing CEO Eric Artz is marching toward profitability — but are layoffs, stricter return policies, and cutting experiential programs a turnaround… or just life support?
Specialty omnichannel retail is a brutal place to be. Amazon and Walmart are pushing upscale assortments from above, while direct‑from‑China sellers undercut on price. (Case in point: my $30 Temu bivvy, perfect for my once‑or‑twice‑a‑year solo bikepacking trips.)
Incoming CEO Mary Beth Laughton (Nike, Gap) might have the chance to double down on REI’s strengths. Here’s how I’d do it.
tl;dr: Don’t be a box retailer. We know how that ends.
1. Turbocharge Membership
REI’s co‑op dividend has barely changed since 1938. Time to make it irresistible. Bundle or discount relevant subscriptions — Strava, Clear, Garmin InReach, America the Beautiful pass — one click away for 24M members. Add members‑only race entries, exclusive events, and partner perks. Shift from cost‑cutting to customer‑lifetime‑value thinking. More engaged members = more visits, bigger baskets, higher loyalty.
2. Make House Brands Covetable
Right now, Co‑op bikes = heavy, bland. REI apparel = sale‑rack filler. Flip the script. Take a page from Costco’s Kirkland playbook: design products members are proud to own, with a “you helped us build it” co‑op ethos. Strong house brands lift margins, strengthen vendor leverage, and give REI a unique edge.
3. Own Outdoor Gear Showrooming
REI’s 190 stores reach 70% of the U.S. population. Turn them into playgrounds for gear. Dirt campsite in‑store. Zwift bike stations. Ski boot and running shoe try‑zones. Walk‑in freezer to test sleeping bags — maybe with an ice bar pouring local beer. Sell that experience space to brands and 3P vendors. No one else offers this level of in‑market exposure to outdoor enthusiasts.
4. Double Down on Experiences
IKEA and Costco use physical retail to drive demand. REI just killed its Experiences program — a proven LTV booster. Reverse course. Expand guided trips, skills classes, and in‑store events. Make stores destinations, not just shelves. Experiences create memories, loyalty, and repeat visits.
5. Turn Green‑Vests into Growth Engines
REI’s staff can be walking encyclopedias. Use them beyond the sales floor: upsell online shoppers, answer digital questions, create content, host livestream demos. This drives AOV and repeat purchases — and beats replacing full‑timers with part‑timers folding shirts, as they did earlier this year.
6. Get Operationally Fit
Big moves need big execution muscle. REI hasn’t shown much format or digital innovation lately. To pull off transformation, they’ll need bold vision, fast cross‑functional planning, and flawless delivery. Nail operations and everything improves — supply chain, search, marketing efficiency.
One last thought: As a co‑op, REI can’t raise capital like a public company. That may limit its ability to fund bold plays. Restructuring might be the only way to bankroll the kind of transformation it needs.
