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This article was first published in our sister brand Shop Eat Surf Outdoor<\/em><\/p>\n A lot has happened politically and in the outdoor industry since REI<\/strong>\u2019s new President and CEO\u00a0Mary Beth Laughton\u00a0was appointed to the role in January, she noted onstage at\u00a0Outside Summit\u00a0in Denver, Colo. last week.<\/p>\n \u201cI think I was announced in this role the same week as the presidential inauguration,\u201d she told moderator Luis Benitez, VP of Global Government Affairs at Lululemon<\/strong>. \u201cI think we all anticipated some change with a new administration, but the level of turmoil that we have all felt \u2014 I know I have felt the last few months \u2014 was something we couldn\u2019t have anticipated. Whether it\u2019s attacks on our\u00a0public lands\u00a0or basic human rights or volatility that we\u2019re all still feeling around\u00a0tariffs, the uncertainty around things like consumer confidence and the stock market \u2014 it\u2019s been a lot.\u201d<\/p>\n The fraught political environment is part of why Laughton said the retailer will lean further into its values under her leadership<\/strong>, inviting more outdoor participants into the REI community and working collaboratively with vendors, employees and other REI partners.<\/p>\n Staying true to REI\u2019s values is what drove Laughton to apologize in April on behalf of the company for endorsing Doug Burgum as Secretary of the Interior<\/strong>, which she said she learned of her first week as CEO. Under the leadership of previous CEO Eric Artz, REI endorsed Burgum \u2014 who has since signed orders to explore opening public lands up to fossil fuel production \u2014 in January. REI did so to try to ensure that the company would \u201chave a seat at the table\u201d with the new administration, Laughton said.<\/p>\n \u201cI took that in. I was really listening. I understood it,\u201d Laughton said. \u201cBut then over the weeks after that, it just became really clear that decision was at odds with who REI really is<\/strong>. It just became really clear in that moment what I had to do, and I think it was really important that I came in and just took accountability for it.\u201d<\/p>\n Laughton said that in addition to using its values as a guide for decision-making, agility and flexibility are some of the best tools the retailer can use as issues such as trade policy continue to change.<\/p>\n \u201cProbably like many in this room, our team has been running a bunch of scenarios,\u201d she said. \u201cWhat we\u2019re really trying to focus on is building into our processes and priorities some agility<\/strong>, just knowing that we don\u2019t know how things are going to turn out and play out here.\u201d<\/p>\n REI has had to make some tough decisions in recent years in an effort to return to profitability, Laughton said, perhaps referring to the hundreds <\/strong>of layoffs the retailer endured over the course of 2024 and, most recently, the shuttering of its\u00a0Experiences\u00a0travel and excursion business, which eliminated 428<\/strong> full-time and part-time jobs. Like many retailers, REI has also had to clean up its inventory and become less promotional, she said.<\/p>\n REI\u00a0reported $3.53 billion<\/strong> in net sales in 2024, a 6%<\/strong> decrease from\u00a0$3.76<\/strong> billion in 2023. Its net loss narrowed by 49%<\/strong> to $156 million<\/strong> as of Dec. 28, 2024, down from $311 million<\/strong> in 2023.<\/p>\n Laughton said she\u2019s feeling optimistic now about what\u2019s to come and that the business is in a healthier place.<\/strong> REI, with its 25 million <\/strong>members, is the largest consumer co-op in the nation, she said. Employees are REI\u2019s \u201csecret sauce,\u201d she added, bringing authenticity, expertise and thoughtfulness to the consumer experience. And REI\u2019s nearly 200<\/strong> stores across the country have an opportunity to strengthen the outdoor community.<\/p>\n \u201cI think about all of those unique assets and when I add them up, I\u2019m really optimistic about where the co-op can go, even though we have been through some tough periods,\u201d she said.<\/p>\n REI plans to grow by welcoming the more\u00a0casual outdoor participants\u00a0who started going outside more during the pandemic, Laughton said.<\/p>\n \u201cWe as an industry need to embrace them and really welcome them into the outdoors,\u201d Laughton said. \u201cFor REI, we need to be relevant for someone who\u2019s going to climb a Fourteener, but we also need to be relevant for somebody who\u2019s going to go take a hike in their neighborhood park<\/strong> and we need to be able to serve them. We need them to feel welcomed into our industry.\u201d<\/p>\n But the key is really serving both the core outdoor community and<\/em> the less serious participants, she said.<\/p>\n \u201cThat\u2019s how we\u2019re going to find growth,\u201d she said. \u201cWe need to find a way to not see it as kind of a tradeoff but really welcoming everyone in and making them feel part of it<\/strong>, so that we don\u2019t look back and say, \u2018Oh, we had that moment during COVID where all these people came in, but then we lost it.\u2019 We\u2019ve got to keep that momentum going.\u201d<\/p>\n Part of that welcoming will include broadening REI\u2019s community programs<\/strong> and making sure more people know about what\u2019s happening at the retailer\u2019s stores and to also start offering those spaces for advocacy for public lands or other issues<\/strong>, she said.<\/p>\n \u201cPre-pandemic REI had done a ton of things to bring people together in our spaces,\u201d Laughton said. \u201cAnd I think it\u2019s just a matter of bringing that back to the forefront and making sure that we\u2019re doing it consistently in as many locations as we can. We already have classes and events and we have people gathering, but I think we could do it in a more consistent and bigger way.\u201d<\/p>\n REI\u2019s values have also driven change in the industry through initiatives such as its Product Impact Standards, implemented in 2023, which are minimum requirements the retailer has around environmental and social standards<\/strong> for anyone that sells through REI.<\/p>\n REI also shares its sustainability learnings and best practices with all of its vendors, Laughton said.<\/p>\n Inclusivity<\/strong> is another one of REI\u2019s values, which is demonstrated in its non-gendered Active Pursuits line, she said, which was created with plenty of community engagement: \u201cIt\u2019s one of the coolest things to me that we do, this type of inclusive design, and just listening to our members and saying, \u2018What do you want to see in product?\u2019\u201d Laughton said. \u201cIn this case, REI\u2019s transgender and non-binary members said REI wasn\u2019t offering them enough sizing options. That feedback was delivered to the designers and product teams who implemented it.<\/p>\n \u201cAnd it\u2019s so cool, because we ended up really reinventing a whole new size and fit chart and coming up with this new approach,\u201d she added. The line is particularly successful with REI\u2019s younger members between the ages of 18 and 34<\/strong>.<\/p>\n Laughton said that the moment demands that the outdoor industry works collaboratively and proactively.<\/p>\n \u201cIt would be such a shame if as an industry we took a step backward in this moment, out of fear.<\/strong> I don\u2019t think that\u2019s where we should be,\u201d she said. Instead, she said the industry needs to work together and get involved in advocating for itself and its consumers.<\/p>\n \u201cI\u2019m looking at [the people in] this room to be in it with us, because I think that\u2019s the way that we\u2019re going to be able to work through these really tough times right now,\u201d she said. \u201cI\u2019m all for the kumbaya. But I\u2019m going to keep pressing. The outdoor industry as a whole needs to evolve to meet this moment.\u201d<\/p>\nAgility and Flexibility for an Uncertain Future<\/h2>\n
Welcoming Casual Participants<\/h2>\n
Values-Driven Business Decisions<\/h2>\n
Outdoor Industry Needs to Work Together in Current Climate<\/h2>\n