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This article was first published in our sister brand\u00a0<\/em>Shop Eat Surf Outdoor<\/p>\n REI <\/strong>CEO\u00a0Mary Beth Laughton\u00a0took the stage at NRF 2026 at Javits Center in New York City on Sunday, marking nearly one year since she took the helm of the outdoor retailer. In a conversation with Fast Company Executive Editor Amy Farley, Laughton shared more details about\u00a0Peak 28, the three-year strategy unveiled in\u00a0September, and\u00a0her vision for the 87-year-old\u00a0company.\u00a0<\/p>\n Laughton discussed how REI plans to evolve\u00a0and what elements of\u00a0its core identity\u00a0she\u2019s\u00a0working to\u00a0retain, as well as\u00a0the role of artificial intelligence in outdoor retail, the relaunch of the company\u2019s travel business, and the lessons she\u00a0learned\u00a0from her time at Nike,\u00a0Sephora\u00a0and Athleta.\u00a0<\/p>\n \u201cOne thing that I always look for when\u00a0I\u2019m\u00a0contemplating a role is,\u00a0do\u00a0I think this company or this brand\u00a0has a lot of growth potential? Do\u00a0I think it\u00a0has unique assets that are\u00a0going to\u00a0enable it to win?\u00a0And when I think about\u00a0REI\u00a0\u2014\u00a0you mentioned our\u00a025 million members\u00a0\u2014\u00a0we have so many unique assets.\u00a0Whether\u00a0it\u2019s\u00a0those members who are so passionate about\u00a0REI, or\u00a0our green vest employees who are in our stores and are amazing experts about the outdoors or our mission\u00a0\u2014\u00a0all of that is\u00a0really unique. So that really drew me in.\u201d\u00a0<\/p>\n Laughton said she also wanted to make sure she could have an impact on the company, which has had some\u00a0challenging\u00a0recent years, with\u00a0multiple\u00a0rounds of layoffs, the closure of the Experiences\u00a0travel\u00a0business and\u00a0a\u00a06% revenue decline in 2024 to\u00a0$3.53 billion.\u00a0<\/p>\n \u201cWe\u2019re\u00a0definitely at an exciting place for the Co-op,\u00a0with\u00a0lots of growth potential ahead,\u201d she said.\u00a0\u201cWe\u2019re also\u00a0making sure we put in the retail fundamentals to enable scale. I really love that sweet spot.\u201d\u00a0<\/p>\n Laughton addressed the impact of artificial intelligence on the retail industry. She\u00a0said\u00a0that AI will touch every aspect of the business but argued that technology itself will not be the differentiator, as it will become table stakes for all retailers. Instead, she believes\u00a0REI\u2019s\u00a0humanity\u00a0will set\u00a0it\u00a0apart.\u00a0<\/p>\n \u201cIt will be the human connection point,\u201d Laughton said. \u201cThe thing [AI] can\u2019t do\u00a0\u2026 is really that lived\u00a0experience in the\u00a0outdoors. It\u00a0hasn\u2019t\u00a0gone hiking.\u00a0It hasn\u2019t gone camping.\u201d\u00a0<\/p>\n Laughton\u00a0said she sees\u00a0an opportunity to\u00a0leverage\u00a0REI\u2019s \u201cgreen vests\u201d\u00a0\u2014\u00a0the\u00a0store\u00a0employees known for their outdoor\u00a0expertise\u00a0\u2014\u00a0in a digital world. The company has begun integrating product testimonials from employees into product pages and\u00a0showcasing\u00a0them in videos. Laughton noted that these additions are driving\u00a0a lift in\u00a0conversions.\u00a0<\/p>\n Regarding \u201cagentic commerce,\u201d\u00a0where AI agents make purchasing decisions on behalf of consumers,\u00a0Laughton acknowledged the need to be present where customers are spending time, including on large language models. However, she also highlighted the risks.\u00a0<\/p>\n \u201cWe\u2019re thinking a lot about what is special that we want to keep just for our own platforms, and what can show up on one of those LLMs,\u201d she said.\u00a0<\/p>\n Laughton explained that the companywide listening tour she embarked on before developing Peak 28 developed some of the foundations of the strategy.\u00a0<\/p>\n \u201cI think one of the most interesting things was that people wanted us to preserve the culture and the mission and the values, and that makes a lot of sense on the cultural side,\u201d Laughton said. \u201cI also heard in the other camp that we need to evolve our culture.\u201d\u00a0<\/p>\n Traditions such as the annual Twinkie roast during the holidays and opting out of Black Friday are important to preserve, she said. But it is also important to stay focused on the future and long-term health of the company. Laughton also elaborated on the apology she made on behalf of REI after the company had endorsed\u00a0Doug Burgum\u00a0for Secretary of the Interior before she was CEO.\u00a0<\/p>\n \u201cI did have to go out and publicly retract our endorsement of him,\u201d Laughton said. \u201cI apologized on behalf of the Co-op. As much as people still\u00a0didn\u2019t\u00a0like\u00a0that\u00a0we had made that decision and were upset with the Co-op,\u00a0I think they\u00a0appreciated the transparency.\u00a0I think they\u00a0appreciated the apology. And I think\u00a0that\u2019s\u00a0a great lesson that companies are never going to be perfect, and sometimes just apologizing and showing that vulnerability is\u00a0actually really\u00a0helpful.\u201d\u00a0<\/p>\n REI similarly voiced its commitment to diversity and inclusion, Laughton said, as attacks on DEI programs gained\u00a0traction\u00a0and other retailers retreated.\u00a0<\/p>\n \u201cWe\u2019re\u00a0really steadfast\u00a0and just standing firm for our commitments to diversity and inclusion because\u00a0that\u2019s\u00a0a core part of our mission.\u00a0It\u2019s\u00a0helping everybody get access to the outdoors.\u201d\u00a0\u00a0<\/p>\n Peak 28 was chosen to signal that the organization and its customers are climbing toward 2028 together, she said. Before\u00a0establishing\u00a0the pillars of the plan, Laughton and her team focused on positioning, choosing a vision for REI as \u201cthe most trusted retailer for people who love the outdoors.\u201d\u00a0<\/p>\n The plan rests on four pillars, and the first prioritizes culture. Laughton explained that without a \u201cconnected, focused, and trailblazing culture,\u201d the rest of the strategy would fail. The second pillar focuses on product assortment, ensuring that when customers enter a store, they find items that feel authentic and relevant.\u00a0<\/p>\n The third pillar addresses service and experience. Laughton emphasized the need to elevate interactions in a way that feels personalized and emotional, countering a retail landscape that is becoming increasingly transactional. The final pillar involves reinventing the membership program.\u00a0\u00a0<\/p>\n \u201cIt\u2019s a combination of growth and innovation and where we want to\u00a0head, but\u00a0also making sure that we\u2019re investing in retail\u00a0foundation\u00a0and fundamentals,\u201d Laughton said. \u201cAs I\u2019ve come into the role, I\u2019m recognizing that the balance of those two is really, really critical.\u201d\u00a0<\/p>\n Laughton\u00a0elaborated on\u00a0the\u00a0company\u2019s\u00a0decision to relaunch its travel business\u00a0last week\u00a0with partner\u00a0Intrepid\u00a0Travel\u00a0less than one year after shuttering its\u00a0Experiences\u00a0business because it\u00a0wasn\u2019t\u00a0profitable.\u00a0<\/p>\n \u201cWe realized \u2026 listening to our members is so key to who we are,\u201d Laughton said. \u201cSo as we listen to our members, who are passionate about (travel), really understanding what they\u2019re looking for and then finding a way to solve for that in a different business model.\u201d\u00a0<\/p>\n Laughton described Intrepid as a partner aligned with REI\u2019s values. This partnership model allows REI to offer adventure travel without carrying the operational weight of the\u00a0previous\u00a0business unit. Laughton framed this\u00a0as a way to\u00a0provide new benefits to members through the reinvented membership program.\u00a0<\/p>\n Laughton reflected on how her past roles inform her current leadership. From her time at Nike, she took away an \u201cintense obsession\u201d with the customer. She recalled how customer centricity was woven into every process, from product creation to marketing campaigns.\u00a0<\/p>\n \u201cTo me, it\u2019s success if we have to stop a meeting where we\u2019re\u00a0debating and we can\u2019t decide something, and the way we get to a decision is actually saying, \u2018Well, what would our customer or member say here?\u2019\u201d Laughton said.\u00a0<\/p>\n At Sephora, Laughton learned the power of emotional connection in loyalty programs. She noted that Sephora\u2019s program succeeds because it connects deeply with customers\u2019 passion for the category. At Athleta, she\u00a0observed\u00a0the importance of aligning mission and values with business growth. She credited Athleta\u2019s success during a competitive period to its clarity on what it stood for, specifically\u00a0regarding\u00a0women\u2019s well-being and sustainability.\u00a0<\/p>\n Laughton\u00a0said she\u00a0sees the dual mandate of serving the core outdoor enthusiast while welcoming newcomers who discovered the outdoors during the pandemic. She believes serving both groups will help REI grow and further its mission of getting more people outside.\u00a0<\/p>\n \u201cWe\u2019ve\u00a0always served the core outdoor enthusiast,\u00a0someone who is climbing, the mountain, or doing the trek or the\u00a0camping experience, and so we need to keep serving them, but then\u00a0we\u2019re\u00a0also wanting to make sure we embrace,\u00a0anyone who loves the outdoors\u00a0\u2026\u00a0I think the way we\u00a0ultimately think\u00a0about it is embracing that full set of consumers can really help not only grow\u00a0REI, but help further our mission, because our mission is all about getting as many people outdoors as we can.\u201d\u00a0<\/p>\n<\/p><\/div>\nThe Role of\u00a0Technology and AI\u00a0in Outdoor Retail<\/h3>\n
Developing Peak 28 and Evolving Culture<\/h3>\n
Relaunching Travel with Intrepid<\/h3>\n
Lessons from Nike, Sephora, and Athleta<\/h3>\n
Looking Ahead<\/h3>\n