REI Plans To Help Save The Planet Earth

REI is on track toward its goal to become the first national retailer to achieve zero waste by 2025, diverting 84% of its operational waste from landfills this past year. In an interview with the CEO and president of the company, Eric Artz, he explains how the company stays focused on its core goals of keeping people outdoors and reducing its environmental footprint.

“Employees at REI understand their work matters, and we are very focused on climate work and providing equitable access outdoors for everyone,” said Artz. The company’s brand ethos allows its associates to “energize” the work environment every day. “It’s how we do our work; we create inspiration for our employees, which then creates energy for our members.”

Employees and customers committed to the environment

The company recently celebrated its 10th year of powering all its stores, distribution centers, and offices with 100% renewable electricity. Artz discussed how the entire team and culture at REI provide all of its employees with the opportunity to make meaningful changes in the environment and how they operate. “The idea of becoming the first retailer to achieve zero waste came from the stores,” Artz explained. The company listens to its employees and customers, many of whom are co-op members and own part of the company.

REI is a co-op meaning it is a privately held company without shareholders. Anyone can become part owner by joining the co-op. Every year the co-op members receive profits from the company, usually 10% annually of what they spend on eligible purchases. The membership costs a nominal $30 for life.

Consumers are looking for retailers beyond just selling products, and many of today’s shoppers want to provide a positive benefit back to the earth. Since the pandemic, consumers have been more conscientious about the impact of consumerism on the planet. In 2022, 1.3 million people became REI co-op members, ending the year with over 23 million lifetime members.

Re/Supply goods are in high demand

As recommerce continues to grow, many retailers have expanded their product assortment to include previously owned goods. However, REI has a different view that is broader and lends itself to one of the core goals of the company. “We always had garage sales before COVID; with the Re/Supply offering, people can get into slightly used gear at great prices. Demand has experienced double-digit growth, so we know this is very meaningful to our members,” said Artz. Buying used instead of new typically reduces the carbon footprint of a product by 50% or more and provides another avenue for REI to achieve its 2030 climate goals. With its Re/Supply program, the company is creating the largest marketplace for high-quality, used outdoor gear and apparel.

In 2022, the company expanded its Re/Supply trade-in service to all retail stores and took back nearly 100,000 items from members to resell to other members, keeping great gear out on the trail where it belongs. Providing used gear to its members allows great access for people to get outdoors and experiment with various activities without a substantial investment in equipment.

Part of the community

REI cares deeply about being invested in the communities to which they belong. “It’s very important that you show up excited and committed and create long-standing relationships with the communities. We will reach out to the local communities before opening a store.” In 2022, REI invested $6.9 million in 503(c) nonprofit partners. “By contributing to new and recently established nonprofits, it allows the communities to distribute resources in the most prolific way for the community,” said Artz.

Looking into 2023

“I am energized by the ability to be back in the supply of products and on how the stores visually look for our customers. People are excited to get outside, so having the product in stock has made the stores look great,” said Artz. Last spring, inflation was higher, but there has been a reasonably consistent enthusiasm for people to spend more time outdoors according to shopping behaviors that Artz discussed. “Traffic is up in the stores, but customers are more price sensitive this year and are looking for value.” REI has a lot to be excited about, with a record year of revenue reaching $3.85 billion and being able to distribute $223.7 million back to its co-op members. More importantly, the company is on track to reach its climate goals and help provide greater equitable access to the outdoors for everyone.