REI, or Recreational Equipment Inc., is a popular outdoor retailer that has been serving customers for over 80 years. But who exactly owns this iconic company? In this article, we will take a deep dive into the history and background of REI to unpack the ownership of this beloved outdoor brand. From its humble beginnings as a small Seattle-based retailer to its current status as a multi-billion dollar company, we will explore the different ownership structures and stakeholders that have shaped REI’s journey. So, grab your backpack and join us as we embark on this exciting adventure to uncover the true owners of REI.
REI’s Founding and Early Years
The Vision of Lloyd and Mary Anderson
In 1938, REI was founded by Lloyd and Mary Anderson with a vision to provide quality outdoor gear and promote the joy of outdoor activities. The couple had a passion for outdoor sports and saw an opportunity to provide customers with the best possible equipment and clothing for their adventures. They started the company with a small investment and a commitment to building a community of outdoor enthusiasts.
Lloyd and Mary believed that the outdoors was a place for everyone, regardless of their background or experience level. They were committed to making outdoor activities accessible to all and were driven by a deep sense of responsibility to protect the environment.
From the very beginning, Lloyd and Mary’s vision for REI was to create a company that was not just profitable but also had a positive impact on the community and the environment. They were determined to build a company that was sustainable, ethical, and committed to promoting the conservation of natural resources.
Today, REI continues to uphold the values and vision of its founders, and is one of the most trusted and respected outdoor retailers in the world. The company’s commitment to sustainability, diversity, and inclusion has helped it to build a loyal customer base and establish itself as a leader in the industry.
The Early Years of REI
In 1938, REI was founded by a group of outdoor enthusiasts who shared a passion for climbing and skiing. The company was initially called “Recreational Equipment Inc.”, and its founders were committed to providing high-quality outdoor gear and equipment to like-minded individuals.
The early years of REI were marked by a strong focus on customer service and satisfaction. The company’s founders recognized that the success of their business would depend on their ability to provide exceptional service to their customers. As a result, they invested heavily in building a knowledgeable and friendly staff that could provide expert advice and assistance to customers.
During this time, REI primarily sold camping gear and equipment, including tents, sleeping bags, and backpacking stoves. However, as the popularity of outdoor activities grew in the post-World War II era, the company expanded its product offerings to include a wide range of outdoor gear and clothing.
Despite its modest beginnings, REI quickly established itself as a trusted source for outdoor enthusiasts. The company’s commitment to quality and customer service helped it to build a loyal customer base, and its reputation continued to grow as more and more people discovered the joys of outdoor adventure.
The Growth and Expansion of REI
The Co-op Model
The Co-op Model, a unique aspect of REI’s ownership structure, is central to understanding the company’s growth and expansion. It was introduced in 1976 as a way to incentivize employees and align their interests with those of the company. Here’s a closer look at the Co-op Model:
Employee Ownership
One of the key features of the Co-op Model is that it provides employees with a sense of ownership in the company. Employees become “members” of the co-op, and after a vesting period, they become eligible to receive dividends based on their tenure and position within the company. This alignment of interests has led to increased employee engagement and a culture of long-term thinking.
Profit Sharing
The Co-op Model also includes a profit-sharing component. After the company has met its financial obligations, any remaining profits are distributed among employees and members in the form of dividends. This approach has contributed to the company’s success by creating a sense of shared responsibility and encouraging employees to work towards the long-term growth of the company.
Decision-Making and Governance
Another significant aspect of the Co-op Model is the involvement of employees in decision-making and governance. Employees are represented on the company’s board of directors, ensuring that their voices are heard and their interests are considered. This arrangement has fostered a sense of ownership and commitment among employees, who are more likely to be invested in the company’s success.
Impact on Company Culture
The Co-op Model has had a profound impact on REI’s company culture. It has created a strong sense of community and shared purpose among employees, leading to a highly engaged and motivated workforce. This culture is evident in the company’s commitment to sustainability, outdoor recreation, and ethical business practices.
In summary, the Co-op Model has been a vital factor in REI’s growth and expansion. By aligning employee interests with those of the company, the model has fostered a sense of ownership, engagement, and commitment among employees. This unique approach to ownership has contributed significantly to REI’s success and has set the company apart from its competitors.
The Evolution of REI’s Product Offerings
Throughout its history, REI has undergone significant changes in its product offerings. From its early days as a small mail-order retailer, the company has grown and expanded its inventory to meet the evolving needs and preferences of its customers. In this section, we will explore the evolution of REI’s product offerings and how the company has adapted to the changing retail landscape.
The Early Years: Mail-Order and Expedition Gear
REI began as a small mail-order retailer specializing in expedition gear for outdoor enthusiasts. The company’s first catalog, which was published in 1938, featured a selection of climbing hardware, backpacking gear, and camping equipment. The products were aimed at a niche market of serious outdoor enthusiasts who were seeking high-quality gear for their adventures.
The 1960s and 1970s: A Wider Range of Outdoor Products
During the 1960s and 1970s, REI began to expand its product offerings beyond expedition gear. The company introduced a wider range of outdoor products, including clothing, footwear, and equipment for activities such as hiking, skiing, and cycling. This expansion was driven by the growing popularity of outdoor recreation and the demand for gear that was more accessible and affordable for a wider range of customers.
The 1980s and 1990s: The Rise of Outdoor Apparel and Equipment
In the 1980s and 1990s, REI continued to expand its product offerings, with a particular focus on outdoor apparel and equipment. The company began to offer a wider range of products from top brands, including The North Face, Patagonia, and Arc’teryx. During this period, REI also started to focus more on providing a one-stop-shop for outdoor enthusiasts, offering a wider range of products and services under one roof.
The 2000s and Beyond: Online Retail and Sustainability
With the rise of e-commerce, REI has continued to evolve its product offerings to meet the changing needs of its customers. The company launched its own website in 1995 and has since expanded its online presence, offering a wider range of products and services, including online ordering, in-store pickup, and free shipping for members.
In recent years, REI has also focused on sustainability, with a particular emphasis on reducing its environmental impact. The company has committed to sourcing 100% of its electricity from renewable sources by 2025 and has implemented a number of initiatives to reduce waste and increase sustainability throughout its supply chain.
Overall, the evolution of REI’s product offerings reflects the changing needs and preferences of its customers, as well as the company’s commitment to providing high-quality gear and services for outdoor enthusiasts. Whether you’re a seasoned mountaineer or a weekend hiker, REI has something for everyone, and its product offerings continue to evolve and expand to meet the needs of its diverse customer base.
The Expansion of REI’s Retail Presence
Over the years, REI has expanded its retail presence by opening new stores in various locations across the United States. In 2019, the company operated 162 retail stores in 39 states, including both standalone locations and smaller “REI Outlet” stores that primarily sell discounted items. The company has also continued to expand its online presence, offering a wide range of products and services through its website and mobile app.
In addition to its physical and online retail stores, REI has also partnered with other companies to offer co-branded products and services. For example, the company has collaborated with Patagonia to create a line of sustainable outdoor clothing and gear, and has partnered with Lyft to offer discounted transportation to customers visiting national parks.
The expansion of REI’s retail presence has been driven by a number of factors, including the growing popularity of outdoor recreation and the company’s commitment to providing high-quality products and services to its customers. As the demand for outdoor gear and apparel continues to rise, it is likely that REI will continue to expand its retail footprint in the coming years.
The Ownership Structure of REI
The Cooperative Model
The ownership structure of REI is unique and is based on the cooperative model. This means that the company is owned by its members, who are also its customers. The cooperative model is a type of business structure that is owned and controlled by its members, who share in the profits and benefits of the company. In the case of REI, the members are individuals who have purchased co-op memberships, which entitle them to a share of the company’s profits and the right to vote on certain matters related to the company’s operations.
The cooperative model has several advantages for REI and its members. First, it allows the company to remain focused on its mission of promoting outdoor recreation and environmental stewardship, rather than being driven solely by profit motives. This aligns with the values of its members, who are often passionate about the outdoors and sustainability.
Second, the cooperative model provides a way for members to share in the financial benefits of the company’s success. Dividends are paid out to members based on their share of the company, and members can also participate in the company’s growth through the purchase of additional shares.
Finally, the cooperative model provides a sense of ownership and involvement for members, who have a say in the company’s direction and operations. This creates a sense of community and shared purpose among members, who are all working towards the same goal of promoting outdoor recreation and environmental stewardship.
Overall, the cooperative model has been a key factor in the success of REI, providing a unique ownership structure that aligns with the values of its members and allows them to share in the financial benefits of the company’s success.
The Role of Members in the Co-op
REI operates as a cooperative, which means that it is owned and controlled by its members. These members are individuals and organizations that have invested in the company and have a stake in its success. In this section, we will explore the role of members in the co-op and how they contribute to the company’s operations and decision-making processes.
- Voting Rights: One of the key benefits of being a member of the co-op is the right to vote on important decisions that affect the company. This includes electing the board of directors, approving major investments, and deciding on the allocation of profits. Members have the power to influence the direction of the company and ensure that it remains true to its mission and values.
- Sharing in Profits: As owners of the co-op, members also share in the profits generated by the company. This means that they receive a portion of the revenue that is left over after the company has paid for its expenses and dividends to shareholders. This sharing of profits is a key aspect of the co-op model and helps to align the interests of members with the success of the company.
- Member-Owners: The members of REI are not just passive investors, but are actively involved in the company’s operations and decision-making processes. They are referred to as “member-owners” and are expected to contribute their expertise and knowledge to the company. This includes participating in committees, providing feedback on products and services, and helping to shape the company’s strategy and direction.
- Local and National Initiatives: In addition to their role in the co-op, members also have the opportunity to participate in local and national initiatives that support the company’s mission and values. This includes volunteering for outdoor conservation projects, advocating for public lands, and supporting community organizations that promote outdoor recreation. By participating in these initiatives, members can make a meaningful impact on the outdoor community and help to ensure that the company remains committed to its mission of promoting the joy of outdoor experiences.
The Board of Directors
REI’s ownership structure is characterized by a unique blend of cooperative and public ownership. While the company is not entirely publicly traded, it has a strong commitment to its customers and the outdoor community. The Board of Directors plays a crucial role in shaping the company’s vision and direction.
The Board of Directors at REI is comprised of 12 members, including both internal and external directors. The internal directors are current or former REI employees, while the external directors bring a wealth of experience from outside the company. This diverse mix of perspectives helps ensure that REI remains focused on its mission and values.
The Board of Directors is responsible for overseeing the company’s strategic direction, financial performance, and long-term sustainability. They meet regularly to discuss key issues, review performance metrics, and make critical decisions that impact the future of the company.
One unique aspect of REI’s Board of Directors is the presence of two “customer directors.” These directors are appointed to represent the interests of REI’s customers and ensure that their needs and preferences are taken into account when making important business decisions. This focus on customer satisfaction has been a hallmark of REI’s success over the years.
In addition to their oversight responsibilities, the Board of Directors also plays a key role in shaping REI’s corporate social responsibility initiatives. They are committed to sustainability, diversity, and inclusion, and work to ensure that REI’s business practices align with these values.
Overall, the Board of Directors at REI is a vital component of the company’s ownership structure. Their dedication to the mission and values of REI has helped the company become a beloved institution in the outdoor community, and their ongoing work will play a crucial role in shaping the future of the company.
The Role of Dividends
When it comes to understanding the ownership structure of REI, it is important to consider the role of dividends. Dividends are payments made by a company to its shareholders out of its earnings. They are a way for shareholders to receive a return on their investment in the company.
In the case of REI, the company is owned by its shareholders, who receive dividends based on their ownership stake in the company. However, it is worth noting that REI is not a publicly traded company, which means that its shares are not available for purchase by the general public. Instead, the company is owned by a small group of shareholders, including its employees, who hold a significant portion of the company’s shares.
The fact that REI is not publicly traded has some important implications for its ownership structure. For example, because the company is not required to disclose financial information to the public, it is not subject to the same level of scrutiny as publicly traded companies. This can make it difficult for outsiders to get a clear picture of the company’s financial health and performance.
Another important aspect of REI’s ownership structure is the fact that the company is owned by its employees. This is known as an employee stock ownership plan (ESOP), and it is a way for employees to own a stake in the company they work for. In the case of REI, the ESOP holds a significant portion of the company’s shares, which means that employees have a vested interest in the company’s success.
Overall, the role of dividends in REI’s ownership structure is an important one. By paying out dividends to its shareholders, including its employees, the company is able to provide a return on investment while also maintaining a strong sense of ownership and commitment among its stakeholders.
The Impact of Ownership on REI’s Operations and Culture
The Importance of Sustainability
As a cooperative corporation, REI’s ownership structure has a significant impact on its operations and culture. One of the core values that the company emphasizes is sustainability. REI’s commitment to sustainability is evident in its policies and practices, which prioritize environmental responsibility and social responsibility.
One of the ways that REI prioritizes sustainability is through its product offerings. The company carefully selects products that are environmentally friendly and sustainably produced. For example, REI has a policy of not selling products that contain PFCs (perfluorinated compounds), which are harmful to the environment. Instead, the company works with its suppliers to develop alternative materials that are more sustainable.
In addition to its product offerings, REI also prioritizes sustainability in its operations. The company has implemented a number of sustainability initiatives, including a comprehensive recycling program, energy-efficient lighting and HVAC systems, and a green building certification program. REI also encourages its employees to reduce their environmental impact by offering incentives for sustainable commuting, such as bike-friendly facilities and electric vehicle charging stations.
REI’s commitment to sustainability extends beyond its own operations and into the wider community. The company partners with organizations such as The Conservation Alliance, which works to protect wild places and promote sustainable outdoor recreation. REI also supports environmental education programs and advocates for public land conservation policies.
Overall, REI’s ownership structure and commitment to sustainability have had a significant impact on the company’s operations and culture. By prioritizing environmental responsibility and social responsibility, REI has become a leader in the outdoor industry and a model for responsible business practices.
The Focus on Community and Environmental Stewardship
As a cooperative, REI’s ownership structure is unique among outdoor retailers. The company’s focus on community and environmental stewardship can be attributed to this ownership model. The following points highlight the ways in which this focus is evident in REI’s operations and culture:
- Member-Owned and Operated: REI is a consumer cooperative, meaning that its members are also its customers. As of 2021, there are over 180,000 active member-owners. This ownership model creates a sense of community among REI’s customers, fostering a shared commitment to the outdoors and the environment.
- Democratic Governance: Each member-owner has a voice in the company’s decision-making process. The board of directors is elected by the membership, and members can vote on key issues, such as the sale or purchase of company assets. This democratic governance structure ensures that the interests of the membership are well-represented and aligned with the company’s values.
- Community Investments: REI is committed to giving back to the communities in which it operates. Through its grant program, the company supports local non-profit organizations that work to protect natural spaces and promote outdoor recreation. Additionally, REI has a strong commitment to diversity, equity, and inclusion, and actively works to ensure that all members of the community have access to the outdoors.
- Environmental Stewardship: As an outdoor retailer, REI recognizes the impact that its industry can have on the environment. The company has made significant investments in sustainability initiatives, such as reducing its carbon footprint, sourcing sustainable materials, and promoting responsible waste management. These efforts reflect the company’s commitment to environmental stewardship and the values of its member-owners.
In summary, REI’s ownership structure has a significant impact on the company’s operations and culture. The focus on community and environmental stewardship is evident in the company’s democratic governance, community investments, and sustainability initiatives. This unique ownership model helps to differentiate REI from other outdoor retailers and aligns the company’s values with those of its member-owners.
The Commitment to Access for All
Since its inception, REI has been committed to making outdoor activities accessible to everyone, regardless of their socioeconomic status or background. This commitment is reflected in the company’s mission statement, which emphasizes the importance of promoting access to the outdoors for all people.
To achieve this goal, REI has taken several steps to make outdoor activities more accessible to everyone. For example, the company offers a variety of affordable gear rentals, which allows people to try out new activities without having to invest in expensive equipment. Additionally, REI has partnered with organizations such as the National Park Foundation and the Trust for Public Land to support the preservation of public lands and ensure that they remain accessible to all.
One of the key ways that REI has made outdoor activities more accessible is through its advocacy for diversity and inclusion in the outdoors. The company has recognized that historically, outdoor activities have been dominated by white, affluent individuals, and has made a concerted effort to promote diversity and inclusion in the outdoors. For example, REI has partnered with organizations such as Outdoor Afro and Latino Outdoors to promote diversity in outdoor activities and provide opportunities for underrepresented communities to connect with nature.
Furthermore, REI has taken steps to make its own operations more inclusive and diverse. The company has implemented a variety of initiatives to promote diversity and inclusion within its workforce, including a mentorship program for underrepresented employees and a diversity and inclusion training program for all employees.
Overall, REI’s commitment to access for all is reflected in its mission statement, its partnerships with organizations that promote diversity and inclusion in the outdoors, and its own internal initiatives to promote diversity and inclusion within the company. By promoting access to the outdoors for all people, REI is working to ensure that everyone has the opportunity to enjoy and appreciate the natural world.
The Future of REI’s Ownership and Operations
The Challenges and Opportunities Ahead
REI’s future ownership and operations will be shaped by a number of challenges and opportunities. One of the main challenges facing the company is the increasing competition from online retailers, who offer a wider range of products at lower prices. In order to remain competitive, REI will need to continue to differentiate itself through its commitment to sustainability and outdoor recreation.
Another challenge facing REI is the changing retail landscape, which has seen many traditional brick-and-mortar retailers struggle to compete with e-commerce giants like Amazon. To stay relevant, REI will need to continue to innovate and find new ways to engage with customers both in-store and online.
Despite these challenges, there are also a number of opportunities for REI to grow and expand its business. For example, the company has been exploring new areas of growth, such as its own private label brands and its REI Adventures travel division. These new initiatives have the potential to help the company diversify its revenue streams and reach new customers.
Additionally, REI has an opportunity to continue to build on its reputation as a leader in sustainability and environmental responsibility. As consumers become increasingly concerned about the impact of their purchases on the environment, REI’s commitment to sustainability could help the company stand out in a crowded marketplace.
Overall, while there are certainly challenges ahead for REI, there are also many opportunities for the company to continue to grow and thrive in the years to come. By staying true to its core values and continuing to innovate and adapt to changing consumer needs, REI can remain a leader in the outdoor retail industry for years to come.
The Role of Technology and Innovation
REI’s future ownership and operations will be significantly influenced by technology and innovation. As the retail industry continues to evolve, it is essential for REI to adopt new technologies and business models to remain competitive.
E-commerce and Omnichannel Retailing
E-commerce will play a critical role in REI’s future operations. The company has already made significant investments in its online platform, and it will continue to expand its digital presence. REI’s omnichannel retailing strategy will enable customers to seamlessly move between online and offline channels, providing a seamless and convenient shopping experience.
Data Analytics and Personalization
Data analytics will be a key driver of REI’s future operations. The company will use data to better understand its customers’ preferences and behavior, enabling it to personalize its marketing and sales efforts. This will help REI to build stronger relationships with its customers and increase customer loyalty.
Innovative Business Models
REI will also explore innovative business models to stay ahead of the competition. The company may experiment with subscription-based models, rentals, or other non-traditional revenue streams. This will help REI to diversify its revenue sources and mitigate the risks associated with traditional retail.
Sustainability and Environmental Responsibility
Finally, technology and innovation will play a critical role in REI’s efforts to become more sustainable and environmentally responsible. The company will leverage technology to reduce its carbon footprint, optimize its supply chain, and improve the sustainability of its products. This will help REI to meet its environmental goals and differentiate itself from its competitors.
Overall, technology and innovation will be essential drivers of REI’s future ownership and operations. By embracing new technologies and business models, REI can remain competitive, build stronger relationships with its customers, and contribute to a more sustainable future.
The Continued Focus on Sustainability and Social Responsibility
As REI continues to navigate the ever-changing retail landscape, one area that remains a top priority is sustainability and social responsibility. In recent years, the company has made significant strides in reducing its environmental impact and improving its supply chain practices.
Green Initiatives
REI has made a commitment to reduce its carbon footprint by 50% by 2025, and has implemented several green initiatives to achieve this goal. The company has invested in renewable energy sources, such as wind and solar power, and has reduced its energy consumption by upgrading lighting and HVAC systems in its stores and distribution centers.
In addition, REI has taken steps to reduce waste and promote sustainable practices among its suppliers. The company has implemented a “sustainability index” to evaluate the environmental impact of its products, and has set goals to increase the use of sustainable materials in its products.
Ethical Sourcing
REI is also committed to ethical sourcing practices, and has implemented a “code of conduct” for its suppliers. The code sets out standards for labor practices, human rights, and environmental responsibility, and REI regularly conducts audits to ensure compliance.
The company has also taken steps to address issues of fair labor and worker rights in its supply chain. REI has partnered with the Fair Labor Association to conduct independent audits of its suppliers, and has implemented a “transparency” program to provide information about its supply chain to customers.
Community Involvement
Finally, REI is committed to giving back to the communities in which it operates. The company has established a foundation to support outdoor recreation and conservation initiatives, and has donated millions of dollars to non-profit organizations focused on these issues.
In addition, REI has launched several initiatives to promote diversity and inclusion in the outdoors. The company has partnered with organizations such as Outdoor Afro and Latino Outdoors to promote access to outdoor activities for underrepresented communities, and has launched a “diversity and inclusion” training program for its employees.
Overall, REI’s continued focus on sustainability and social responsibility is a reflection of the company’s values and commitment to making a positive impact on the world. As the retail industry continues to evolve, it will be interesting to see how REI’s ownership and operations continue to shape its future in these areas.
FAQs
1. What is REI?
REI, or Recreational Equipment Inc., is a retail company that specializes in outdoor gear and apparel. It was founded in 1938 by Lloyd and Mary Anderson, and has since grown to become one of the largest outdoor retailers in the United States.
2. What types of products does REI sell?
REI sells a wide range of outdoor products, including camping gear, hiking equipment, cycling accessories, and more. They also offer apparel for outdoor activities, such as jackets, pants, and shoes.
3. Who owns REI?
REI is a privately held company, meaning that it is not publicly traded and does not have a centralized ownership structure. Instead, the company is owned by its employees and a small group of shareholders.
4. How is REI different from other outdoor retailers?
REI is known for its commitment to sustainability and environmental responsibility. The company has a strong focus on reducing its carbon footprint and promoting sustainable practices in the outdoor industry. Additionally, REI is a cooperative, meaning that it is owned and operated by its employees, which gives the company a unique culture and approach to business.
5. Where can I find REI products?
REI products can be found in their retail stores, which are located in various states across the United States. They also offer online shopping and shipping to customers nationwide.
