Kaitlin ColemanBrent Mendenhall

Mary Elizabeth Sluck

What is REI?

“Recreational Equipment Incorporated is a national outdoor retail co-op dedicated to inspiring,

educating and outfitting its members and the community for a lifetime of outdoor adventure and stewardship. We offer our own line of high-

quality award-winning gear and apparel, in addition to products from the top brands for camping, climbing, cycling, fitness, hiking,

paddling, snow sports and travel.”

History 1936- Unable to find quality ice axes in the U.S. climber Lloyd Anderson sources them from Austria for

$3.501938-With help from lawyer Ed Rombauer, Lloyd and Mary Anderson form the Recreational Equipment

Cooperative to share quality outdoor gear with climbing friends in Seattle, Washington. 1956- Lacking the capital required to form a corporation, the members vote to make the company a non-

profit so they can secure LLC status. They form recreational equipment incorporated. 1970- REI begins the decade with nearly 200,000 members, two retail stores in Seattle and $5 million in

annual sales. 1980- One million members, six retail stores and $50 million in annual sales.1990- By the 90’s REI had two million members, over $230 million in annual sales and 26 retail stores. 2006- Celebrates $1 billion and annual sales by awarding $1 million in grants to 100 national parks, a total

of $4 million in grants for the year. 2010- REI begins the decade with 10 million members, 114 retail stores across the nation, and $1.66 billion

in annual sales.2012- Current CEO Jerry Stritzke, employs over 11,000 people all have access to health care benefits.

$1.93 billion in annual sales. 2020- REI pledges to become a climate neutral zone and zero waste to landfill company by focusing on it’s

five areas of business: green buildings product stewardship, proper paper usage, reducing waste and energy efficiency.

How is REI Successful?

Community● REI grants funded 397,000 volunteers and 2.8 million hours of volunteer work on

public lands.

● Over 260 nonprofit organizations received funding from REI

● Total distribution of $3.9 million to nonprofits!

How is REI Successful?Sustainable Operations● 20 % of retail locations have solar systems that generate between 15 and 99% of electrical

needs

● Installation of ceramic metal halide spotlights in stores lowers energy usage by 4.1 million

kilowatt-hours per year—enough to power about 13 average stores.

● Total waste to landfill contributions in 2012 decreased 53 tons from 2011, a 1.4

%reduction.

How is REI Successful?

Workplace● Workforce diversity● Culture and Values● One of the “100 Best”● Pay and Benefits

Stewardship“Our objective: to be transparent in our actions and hold ourselves accountable to our

members, customers, communities and employees.”

SWOT Analysis

Strengths:● Multi-channel retailer with brick-and-

mortar stores, an online store as well as a mail catalog

● Customer loyalty to the brand, creating community

● Utilization of social media to connect with customers

● Provide customers with a unique in-store experience

● Give customers the opportunity to participate in unique “Travel with REI” trips

Weaknesses:● Only have stores in 33 states● No stores in the midwest and northeast

where there may be demand for an outdoor equipment retailer

● Limited lines for women & children

SWOT Analysis

SWOT Analysis

Opportunities:● Open store locations in every state in

order to become a nationally recognized brand

● Begin expanding internationally

● Expand their lines for women & children rather than just focusing on men

Threats:● Amazon.com and other stores with strong

loyalty/outdoor focus that offer similar products for cheaper

● Many try items at REI, but end up finding a better deal online

Referenceshttp://www.rei.com/adventures/resources/whytravel.html

http://rei.jobs/story/

http://www.rei.com/stewardship/report/2012.html