REI operates approximately 185 stores in 42 states.
REI Co-Op is shutting down one of the more unique aspects of its operations.
The specialty outdoor retailer announced that it will exit its Experiences business, which includes adventure travel, day tours and classes. In a letter on the retailer’s website, REI president and CEO Eric Artz said that primarily financial results for 2024 were positive, but detailed the decision to end the program that has existed for over 40 years.
“I greatly appreciate the work by teams across the co-op to deliver improvements in 2024, which is a positive step in our journey to return to a healthy economic model,” said Artz, who joined REI in 2012 and was named CEO in 2019. “At the same time, we still have more work to do to return the co-op to sustainable, profitable growth, which brings me back to today’s decision.”
Artz noted that REI’s Experiences business only served a small fraction of the company’s membership, and therefore was not profitable. He added that changes were made to try and save the program to no avail.
“Experiences served 40,000 customers in 2024 — less than 0.4% of all co-op customers — and costs significantly more to run than it brings in,” said Artz. “When we look at the all-up costs of running this business, including costs like marketing and technology, we are losing millions of dollars every year and subsidizing Experiences with profits from other parts of the business. Even at our peak in 2019 — our best year for Experiences ever — we did not generate a profit.”
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