This article was first published in our sister brand Shop Eat Surf Outdoor
A lot has happened politically and in the outdoor industry since REI’s new President and CEO Mary Beth Laughton was appointed to the role in January, she noted onstage at Outside Summit in Denver, Colo. last week.
“I think I was announced in this role the same week as the presidential inauguration,” she told moderator Luis Benitez, VP of Global Government Affairs at Lululemon. “I think we all anticipated some change with a new administration, but the level of turmoil that we have all felt — I know I have felt the last few months — was something we couldn’t have anticipated. Whether it’s attacks on our public lands or basic human rights or volatility that we’re all still feeling around tariffs, the uncertainty around things like consumer confidence and the stock market — it’s been a lot.”
The fraught political environment is part of why Laughton said the retailer will lean further into its values under her leadership, inviting more outdoor participants into the REI community and working collaboratively with vendors, employees and other REI partners.
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Staying true to REI’s values is what drove Laughton to apologize in April on behalf of the company for endorsing Doug Burgum as Secretary of the Interior, which she said she learned of her first week as CEO. Under the leadership of previous CEO Eric Artz, REI endorsed Burgum — who has since signed orders to explore opening public lands up to fossil fuel production — in January. REI did so to try to ensure that the company would “have a seat at the table” with the new administration, Laughton said.
“I took that in. I was really listening. I understood it,” Laughton said. “But then over the weeks after that, it just became really clear that decision was at odds with who REI really is. 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.”
Agility and Flexibility for an Uncertain Future
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.
“Probably like many in this room, our team has been running a bunch of scenarios,” she said. “What we’re really trying to focus on is building into our processes and priorities some agility, just knowing that we don’t know how things are going to turn out and play out here.”
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 of layoffs the retailer endured over the course of 2024 and, most recently, the shuttering of its Experiences travel and excursion business, which eliminated 428 full-time and part-time jobs. Like many retailers, REI has also had to clean up its inventory and become less promotional, she said.
REI reported $3.53 billion in net sales in 2024, a 6% decrease from $3.76 billion in 2023. Its net loss narrowed by 49% to $156 million as of Dec. 28, 2024, down from $311 million in 2023.
Laughton said she’s feeling optimistic now about what’s to come and that the business is in a healthier place. REI, with its 25 million members, is the largest consumer co-op in the nation, she said. Employees are REI’s “secret sauce,” she added, bringing authenticity, expertise and thoughtfulness to the consumer experience. And REI’s nearly 200 stores across the country have an opportunity to strengthen the outdoor community.
“I think about all of those unique assets and when I add them up, I’m really optimistic about where the co-op can go, even though we have been through some tough periods,” she said.
Welcoming Casual Participants
REI plans to grow by welcoming the more casual outdoor participants who started going outside more during the pandemic, Laughton said.
“We as an industry need to embrace them and really welcome them into the outdoors,” Laughton said. “For REI, we need to be relevant for someone who’s going to climb a Fourteener, but we also need to be relevant for somebody who’s going to go take a hike in their neighborhood park and we need to be able to serve them. We need them to feel welcomed into our industry.”
But the key is really serving both the core outdoor community and the less serious participants, she said.
“That’s how we’re going to find growth,” she said. “We 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, so that we don’t look back and say, ‘Oh, we had that moment during COVID where all these people came in, but then we lost it.’ We’ve got to keep that momentum going.”
Part of that welcoming will include broadening REI’s community programs and making sure more people know about what’s happening at the retailer’s stores and to also start offering those spaces for advocacy for public lands or other issues, she said.
“Pre-pandemic REI had done a ton of things to bring people together in our spaces,” Laughton said. “And I think it’s just a matter of bringing that back to the forefront and making sure that we’re 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.”
Values-Driven Business Decisions
REI’s 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 for anyone that sells through REI.
REI also shares its sustainability learnings and best practices with all of its vendors, Laughton said.
Inclusivity is another one of REI’s values, which is demonstrated in its non-gendered Active Pursuits line, she said, which was created with plenty of community engagement: “It’s one of the coolest things to me that we do, this type of inclusive design, and just listening to our members and saying, ‘What do you want to see in product?’” Laughton said. “In this case, REI’s transgender and non-binary members said REI wasn’t offering them enough sizing options. That feedback was delivered to the designers and product teams who implemented it.
“And it’s so cool, because we ended up really reinventing a whole new size and fit chart and coming up with this new approach,” she added. The line is particularly successful with REI’s younger members between the ages of 18 and 34.
Outdoor Industry Needs to Work Together in Current Climate
Laughton said that the moment demands that the outdoor industry works collaboratively and proactively.
“It would be such a shame if as an industry we took a step backward in this moment, out of fear. I don’t think that’s where we should be,” she said. Instead, she said the industry needs to work together and get involved in advocating for itself and its consumers.
“I’m looking at [the people in] this room to be in it with us, because I think that’s the way that we’re going to be able to work through these really tough times right now,” she said. “I’m all for the kumbaya. But I’m going to keep pressing. The outdoor industry as a whole needs to evolve to meet this moment.”
Kate Robertson can be reached at kate@shop-eat-surf-outdoor.com.
