Rei Inc

Recreational Equipment Incorporated (REI): A Responsible Retail Cooperative

Recreational Equipment Incorporated (REI) is a national retail cooperative famous for its out- door apparel and equipment. A cooperative consists of individuals who have joined together to secure the benefits of a larger organization. In the case of REI, the company is organized as a consumer cooperative. Members of the cooperative receive a portion of the organization’s profits annually based on a percentage of their eligible purchases. As a result, REI maintains a strong focus on customers, an emphasis that has encouraged the organization to offer superior goods and services in areas such as mountain climbing, camping, and other outdoor activities.

This case will discuss REI’s social responsibility initiatives and business framework. We begin by analyzing REI’s background and business structure. Next, we examine REI’s emphasis on employees, the environment, and the community. We then touch upon REI’s advocacy efforts and the REI Foundation. The case concludes by looking at some challenges the company must address.

The concept of REI originated due to a need that could not be met locally. During the 1930s Lloyd Anderson, a member of the Pacific Northwest Mountaineers, was looking for a high-quality ice ax at a reasonable cost. After searching without success, Anderson found what he needed in an Austrian Alpine Gear catalog for $3.50. His find excited the climbing community around Seattle, prompting Anderson to envision a local business that would carry items for mountain climbers at reasonable prices. In 1938 Lloyd Anderson and his wife Mary, along with 21 fellow climbers, founded an out- door gear consumer cooperative. At first the cooperative was focused specifically on mountain climbing. In fact, its first full-time employee and eventual CEO was John Whittaker, the first Ameri- can to successfully climb Mt. Everest. Yet over the years REI grew to include gear for...