REI
From Wikipedia, the free encyclopedia
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| Type | Consumers' cooperative |
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| Founded | 1938 |
| Headquarters | Kent, Washington |
| Industry | sporting goods and outdoor gear |
| Website | www.rei.com |
REI (Recreational Equipment Inc.) is an American consumers' cooperative that sells outdoor recreation gear and sporting goods via the Internet, catalogs, and over 90 stores in 27 states. It opens six to eight new stores each year. REI's sales exceeded US$1.18 billion in 2006.[1] Its major competitors in the U.S. include many other sporting goods retailers.
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[edit] History
Lloyd and Mary Anderson founded REI in Seattle, Washington in 1938. The Andersons imported an Academ Pickel ice axe from Austria for themselves, and decided to set up a cooperative to help outdoor enthusiasts acquire good quality climbing gear at reasonable prices. Through the 1970s it identified itself prominently as REI Co-op, focusing primarily on equipment for serious climbers, backpackers and mountaineering expeditions. However, in the 1980s, with changes to its Board of Directors, the emphasis shifted toward family camping and branched out into kayaking, bicycling, and other outdoor sports. Clothing, particularly "sport casual" clothes, also became a greater part of the company's product line. Although the company is still a cooperative, providing special services to its members, the "co-op" moniker has been dropped from much of its literature and advertising as it solicits business from the general public, even if they are not members. REI is now the largest consumer cooperative in the United States[citation needed], with over three million active members who made a purchase in the past 12 months, and a total of more than 8 million members since its inception.
[edit] REI memberships
There is a one-time fee of $20 for lifetime membership to the co-op. REI normally pays an annual dividend check to its members equal to 10% of what they spent at REI on regular-priced merchandise in the prior year, although this is not guaranteed. The rebate, which expires on December 31 two years from the date of issue, can be used as credit for further purchases or taken as cash or check between July 1 and December 31 of the year that the dividend is valid. In recent years, REI's annual financial statements have shown several million dollars in unclaimed annual dividends, suggesting that not all members avail themselves of this significant membership benefit. Summaries of the financial statements are mailed with the member's dividend statement and are posted on the REI website.
[edit] Corporate information
REI is headquartered in Kent, Washington. Its flagship store is in the Cascade neighborhood of Seattle at the southern end of Eastlake Avenue East. It has a distribution centers in Sumner, Washington and Bedford, Pennsylvania.
REI employs over 9,500 people, most of them in the stores, many of whom are part-time. All employees receive health care benefits. REI has been ranked in the top 100 Companies to Work for in the United States by Fortune Magazine since 1998, which earned them a place in the Fortune Magazine's "Hall of Fame". REI ranked as #27 in 2007.[2]
REI is governed by a board of 13 directors, one member being the CEO. Directors serve for terms of one or three years. Board candidates are selected by the REI Board Nomination and Governance Committee. In earlier years the elections for the board were a competitive election with both board nominated and self-nominated petition candidates. In recent years REI has eliminated the opportunity for petition candidates and have only nominated as many candidates as open positions. Members are mailed a ballot, with the nominees required to garner 50% of the ballots returned. Though REI is owned by its membership and the board ostensibly serves at the members pleasure, there is no path to board membership without the approval of the Board Nomination and Governance Committee.
Although the majority of what it sells is brand-name merchandise from other companies, REI designs and sells its own private-brand gear under either the REI brand or under another, such as Novara bicycles. These products are often made by well known manufacturers such as the trekking pole maker Komperdell. The REI brand is primarily focused on value and durability.[citation needed] REI branded products are tested extensively by REI staff in house using specially designed tests that closely simulate outdoor use.[citation needed]
REI competes as a full-service retailer, with a web site, including order-on-the-web and free delivery to a nearby store, rather than as a low-price retailer. Local stores host free clinics on outdoor topics and organize short trips originating from the store to explore local hikes and cycling paths. REI also supports local communities, offering meeting space free of charge to non-profit organizations, supporting conservation efforts, and organizing yearly outdoor service outings. REI donates millions of dollars annually to conservation groups in the US. In 2006, REI engaged almost 170,000 people in 900,000 volunteer service hours and company-wide donations exceeded $4 million.[citation needed] They also send volunteers to help the groups with cleaning up the environment, building new trails and teaching children the importance of caring for the environment.[3]
[edit] Environmental initiatives
In 2006, REI purchased 11 million kilowatt hours of green power, enough to offset twenty percent of its overall power consumption. This purchase placed REI on the United States Environmental Protection Agency's top ten list of retailers who purchased cleanly generated electricity.[4] By 2007, REI promises to make its trips through REI Adventures carbon neutral through the purchasing of green power credits "Green Tags".[5] REI Adventures is the first US travel company to introduce this type of program.[6]. REI has pledged to be a climate neutral and zero waste to landfill company in 2020 focusing on the five areas of its business: green buildings, product stewardship, proper paper usage, reducing waste and energy efficiency.[7]
[edit] Non-retail diversification
REI has diversified its offerings into global adventure vacations though the REI Adventures branch which began in 1987.[8]
In 2006 REI started the Outdoor School in selected markets. The Outdoor School is a series of one day trips in the local area, topics include mountain biking, road biking, kayaking, backpacking, rock climbing, outdoor photography, family hiking and others. The current locations of the Outdoor School are the San Francisco Bay Area, the San Diego area, the Los Angeles area, Boston, Sacramento, Philadelphia and Washington D.C./Virginia/Maryland area.
[edit] See also
Mountain Equipment Co-op is a comparable cooperative in Canada.
[edit] References
- ^ http://www.rei.com/aboutrei/consfinancial06.pdf
- ^ REI Jobs: Fortune 100 Best Companies to Work For 2006
- ^ REI: About REI
- ^ http://www.epa.gov/greenpower/pdf/top10retail_jun06.pdf
- ^ REI: Climate Change and Energy - Greenhouse Gas Reduction
- ^ REI Adventures: REI Carbon-Neutral Travel
- ^ 2006 REI Stewardship Report: Sustaining the Natural World
- ^ Travel FAQs
[edit] External links
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