What Led To REI’s Recent Resurgence In Outdoor Retail?

REI got its start back in 1935 in the Seattle area. Lloyd and Mary Anderson Got the idea when they decided they needed to buy an ice axe and the price was approximately 20 bucks. $20 back in 1935 was a serious piece of change. The ice axe had to pass through several hands starting in Austria before it wound up in Seattle. 

With a lot of research, they discovered that they could buy direct from the Austrian manufacturer, have it shipped to Seattle, and the final cost would be about $3.50. 

a good idea makes you popular.

When their mountaineering friends found out about the savings, they couldn’t help themselves. They wanted to Save money on their equipment and spend more money on their experiences. 

According to rei.com,
‘In 1938, with the help of a lawyer friend, Lloyd, Mary and 21 other Seattle-area adventurers officially formed the co-op, each joining for a $1 lifetime membership fee.’ 

A little more than 90 years later, REI has had some issues, but now, with a new CEO, they’re on their way back. 

According to Seattle.imes.com,
‘Buoyed by a slight improvement in financials during her first year on the job, REI Chief Executive Officer Mary Beth Laughton is trying to usher in a new era at the Issaquah-based co-op.’ 

Today they have a plan.

Over the last couple of years, REI has seen significant losses. In 2025 sales totaled in the billions worldwide but were still considered flat even though membership had gone up. 

At the end of last year, they had 12,500 employees, the lowest employment level in several years after a series of layoffs. Now REI’s chief executive officer feels that REI is on the rebound. 

My first experience with REI was when I was a teenager. I had decided that I wanted to go on a two-week hike over the Cascades with a church group and needed a backpack for the trip. My mother, being the practical person that she is, said we had to go to REI. I had no idea if we were members.  

We went, did some shopping, found the best backpack that my mom was willing to afford Along with a modern sleeping bag and that was the backpack that I used to hike over the Cascades that summer, and then I wound up doing it again the next summer as well. 

Any time anybody in my immediate family needed anything even remotely recreational; REI was the first choice. 

They are coming back.

Now here we are in 2026 and even though REI lost money last year, things are looking up. They have had three consecutive quarters of sales growth.  

The competition is tough right now. They’re competing against Walmart, Amazon, Bass Pro Shops, Dick’s Sporting Goods, Academy Sports and Outdoors, and Cabela’s. 

I think the advantage that REI has over all their competitors is that they are a Co-op. They truly are in the business of serving their customers in the best way possible with the best products available. 

And it all started in Seattle with an idea back in 1935.