REI
Case Study
REI
Nation’s top outdoor retailer is a pipeline for its
own and the industry’s innovations
Kent, Wash. – When people talk about the innovations flowing from the
Pacific Northwest, many focus in on aerospace and software. But as REI
Fast facts:
- Founded as a memberowned cooperative in
1938
exemplifies, the outdoor industry is just as dynamic and shares many of
the same attributes: a young, well-educated workforce, the constant
melding of new components and ideas into new products, consumerfocused design, and sophisticated supply chain and distribution channels,
- Officially named
Recreational Equipment,
Inc.
to name just a few.
- Began as a group of 23
mountain climbing
buddies
people for a lifetime of outdoor adventure and stewardship.” In the
- 4.7 million members
ecosystem of equally innovative suppliers in the Northwest and across
- Over 120 stores in 30
states
- REI.com and REIOUTLET.com
The retailer has a longstanding mission to “inspire, educate and outfit
process it has created thousands of skilled jobs, and it sustains an
the country.
Just like high tech, the industry is infused with knowledgeable workers.
There are apparel designers figuring out new ways to wick sweat through
- More than 11,000
employees
advanced fabrics, sustainability experts focusing on minimizing waste
- One of FORTUNE’s Best
Companies to Work For
every year since 1998
designs, and logistics experts optimizing inventory distribution. REI
- Donates $ millions
annually to preserve the
environment and get
people outside
and environmental footprints, tent architects inventing ever-lighter
professionals also have to deliver a top-tier retail experiences both in
stores and online. What’s different is that all this work is fueled by a
passion for human-powered outdoor recreation.
And while REI develops its own line of high-quality gear and apparel for
camping, climbing, cycling, fitness, hiking, paddling, snow sports and
travel, the lion’s share of its inventory comes from other brands, large
REI
and small. Nationwide, REI relies on innovations from more than 1300 vendors, almost 500 of which are
headquartered in the Northwest. This ecosystem helps the company deliver more than 25,000 product
SKUs to its 120+ retail stores and its online stores, REI.com and REI-OUTLET.com. The company is
even expanding into new territories as enthusiasm for outdoor adventure grows, opening its first New
York City store in SoHo last year.
The parallels to traditional high tech bleed over into R&D too. It it can take years before a new outdoor
design hits the market. REI’s work culture promotes developing high-performance products at
reasonable consumer prices. So even seemingly mundane design elements like the placement of
zippers, pockets or hoods are repeatedly analyzed, tested and re-designed until they’re just right.
This focus on performance and expertise extends to REI’s retail experience. The company seeks out
retail employees with outdoor adventure know-how who are passionate about engaging the outdoors so
that they can provide shoppers with well-grounded advice.
Beyond its stores, expert REI instructors staff its REI Outdoor School, offering beginning- to advancedlevel classes in kayaking, rock climbing, mountain biking, navigation, snowshoeing, road cycling,
backpacking and more. Thousands of people attend these outdoor activity classes annually. REI also
runs a full-service adventure travel business – REI Adventures – which offers unique high-adventure
excursions to all seven continents. The company offers more than 150 trips worldwide, including
weekend getaways, family adventures and volunteer expeditions.
Attracting the best and brightest requires careful attention to the work environment as well as to the
company’s impact on the world. REI’s business practices include extensive recycling efforts, sustainable
sourcing of materials and requiring workplace codes of conduct and fair labor practices from its
suppliers. REI’s emphasis on workplace values is a big reason why it has been chosen as one of
FORTUNE magazine’s “Best Companies to Work For” every year since the magazine began compiling
its list in 1998.
REI
Employees say REI’s focus on environmental stewardship is another reason they love working for the
company. REI stores mobilize tens of thousands of volunteers to build trails, clean up beaches, restore
local habitats and more. Last year, the company spearheaded more than 540 REI-sponsored
conservation projects, including 35,990 volunteers and 137,089 hours of “sweat equity” on trails, parks
and waterways. REI also invests a portion of its profits each year in organizations with similar goals. In
2011, REI granted more than $4.4 million to more than 330 local and national nonprofits that share REI’s
commitment to engage in and care for the great outdoors. The result was an additional 3.4 million
volunteer hours to protect and maintain natural spaces and recreational areas. The company’s non-profit
organization, The REI Foundation, works to ensure that tomorrow’s outdoor enthusiasts and conservation
stewards reflect the diversity of America.
This commitment to both innovation and stewardship helps chart REI’s course. And there’s one more
parallel to high tech that bodes not just for REI, but for the outdoor industry as a whole. U.S. tech
innovators proudly point to being global leaders in their fields. Arguably, the outdoor industry can say that
with even more conviction. Non-U.S. companies are hard to find at the industry’s enormous biannual
trade show, Outdoor Retailer. This is an industry in which American entrepreneurship and innovation
clearly outpace the competition.