REI Co-op has “lots of growth potential ahead,” according to Mary Beth Laughton, the outdoor retailer’s president and chief executive officer.
Sitting down with Fast Company executive editor Amy Farley for a one-on-one chat at the National Retail Federation convention, Laughton spoke about her efforts to strike a balance between moving the 87-year-old brand forward while upholding its heritage, culture and values. This includes serving both its core customer base and those who are newer to the outdoors.
“Embracing that full set of consumers can really help not only grow REI, but help further our mission, because our mission is all about getting as many people outdoors as we can,” she said.
When Laughton joined REI roughly a year ago, the veteran of Nike, Sephora and Athleta went on a three-month listening tour, visiting stores, distribution centers and vendors. She asked employees for insights on the REI consumer and their perspectives on which aspects of the company should be preserved or transformed — and many of the answers on both the keep and change sides came down to culture.
REI’s co-op business structure means that the company is owned by 25 million members who pay a nominal fee of $30 for a lifetime membership.
“We don’t have investors or equity owners, which means that we can really make decisions for the long-term health of the co-op,” said Laughton. “And it also means that we can be super centered on our members and serving our members.”
During the pandemic, when the public embraced the outdoors, it “opened the aperture of who we can serve” to include not only hardcore enthusiasts but “everyone who loves the outdoors.”
Even though REI operates 195 stores across the U.S., the company has had to make some “tough choices” to protect its financial viability such as closing stores, laying off staff and cutting the travel and outdoor experiences business in early 2025. Three stores will close in 2026, she said, including the New York City flagship in SoHo.
“Like any retailer, we’re constantly evaluating our portfolio of stores,” she explained. “As I came in to lead the co-op, I had to make sure we’re setting ourselves up for long-term health and profitability. If we’re profitable and healthy, that enables us to fulfill our mission more.”
Laughton also listens to its customers, who were vocal about their displeasure losing the experiences business. So last week, REI revealed it is partnering with Intrepid Travel on curated and guided active trips. “We’re excited about being able to still offer access to adventure travel but doing it in a different way,” Laughton said.
Curating travel experiences for consumers reflects REI’s member-centric model. The retailer also taps these passionate individuals as a sounding board for product development feedback, making them part of the creation process.
In a crowded outdoor retail space, REI wants to stand out by earning and maintaining consumer trust. REI recently introduced “Peak 28: Ascending Together,” a three-year plan designed to make REI “the most trusted retailer for people who love the outdoors.” The plan centers around four strategic pillars: building connections through a revamped membership program, elevating retail experiences, offering a product assortment that reflects its culture and values, and fostering a “connected, focused and trailblazing culture.”
“We could have this great plan on paper, the strategy is being really solid, but if we didn’t get the cultural evolution at the same time, the plan probably isn’t going to come to fruition,” Laughton said. These pillars are expected to get the company “back to profitability by 2028,” she said.
REI’s passionate membership is also unafraid to speak out when company actions do not align with the values they associate with the co-op. Laughton joined REI shortly after the company had signed a letter from the Outdoor Recreation Roundtable (ORR) endorsing Doug Burgum’s nomination for U.S. Secretary of the Interior, a move met with backlash among co-op members and employees. When asked about the move, Laughton said REI initially signed to “have a voice at the table for important issues related to the outdoor industry.”
Eventually, REI retracted the nomination. “Companies are never going to be perfect, and sometimes just apologizing and showing that vulnerability is actually really helpful,” Laughton said.
Mary Beth Laughton
Courtesy of REI Co-op
Relationship building also happens on the store floor. Per Laughton, one differentiating aspect of the REI shopping experience is the store associate team, known as the “green vests,” who offer outdoor expertise and added services like backpack fitting. “That’s something very unique in retail,” she said, “the fact that they are trusted experts. They give amazing advice around the outdoors because they love the outdoors themselves.”
Taking this customer service beyond its doors, REI is integrating the green vests into online product pages and marketing campaigns. Although she sees AI eventually integrating into every point in the retail journey, she noted that the green vests have something AI lacks: real-world experience engaging in outdoor activities like camping or hiking.
“The idea that a retailer will have a seamless, highly personalized experience, feels like table stakes, and everybody’s going to have that,” Laughton said. “But really, the brands that can make the emotional connection with their customers and really build relationships are the ones that are going to win.”
As a multibrand retailer, Laughton believes REI has an advantage as it leans into its four core categories: run, hike, backpack and camp. Among its top brands are Patagonia, The North Face and Arc’teryx, all of which also operate their own stores. On top of that are other outdoor specialists such as L.L. Bean that itself is embarking on an aggressive store opening strategy, along with Dick’s Sporting Goods, Bass Pro Shops, mass merchants including Walmart, and even Amazon — all of whom are vying to attract the outdoor shopper.
But Laughton believes REI has an advantage. “We have the service and expertise that I think really differentiates us,” she said. “And we have great product too. So yes, there are a lot of players in the space, but there are some key differences, like the fact that we are a co-op with a strong mission and values. And our members just love shopping with us for some of those reasons.”
— With contributions from Jean E. Palmieri
