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Transcript of Management
Fall under 3 categories: camp/travel, actionsports, and outdoorwear
Products change seasonally
REI brand gear and clothing
Also supplied by other top outdoor outfitters From the Stores to the Outdoors
October 2, 2012 REI Fiona Wilke
Kristen Wolf REI's Mission Sources
The Ice Axe Dilemma
Early 1930's: Lloyd and Mary Anderson recognize a void of quality gear at reasonable prices in the U.S.
1938: REI opens in the Anderson's Seattle home
1944: Seattle gas station becomes REI's first store
Membership benefits of the co-op
Customers are the owners and share in the profits of their purchases
Paid an annual dividend
A vote in company decisions
Bold organizational structure at this time
1953: Jim Whittaker hired as the first full-time employee
1971: Lloyd Anderson steps down as CEO and replaced by Whittaker
1975: REI opens second store in Berkeley, California
Whittaker leads company on a path of development and progress
1970s: The REI growth controversy
A decision of expansion vs. maintaining original company structure
1979: Whittaker steps down and is replaced by Jerry Horn
Horn leads REI on a path of diversification and change
Seven stores across the country and a mail-order catalog
Expansion into new outdoor merchandise markets
1994: REI grows to 40 stores and 900,000 members
1996: Grand opening of new flagship store in Seattle
2001: REI in Japan fails in performance and subsequently closes
2005: Sally Jewell becomes president of REI
Evisions diversification of target customers "We inspire, educate, and outfit for a lifetime of outdoor adventure and stewardship."
122 Stores and 3 flagships
Still structured as a cooperative with 11,000 employees and 4 million members, but open to all customers for retail sales
Maintains original mission to provide quality gear at reasonable prices Products
and Performance History and Industry Position • REI Current Financial Standing
o 2011 Sales totaled $1.80 billion
o Operating Income for 2011 was $116.2 million
o Net income of $30.2 million
4.7 million active members
• 841,863 new members in 2011
Over $137.2 million returned to REI members through refund system
o 122 stores in 29 states o Mountain Equipment Co-op
Started as the Canadian equivalent to REI
• Began in 1971 with $65 of operating capital
o Followed the REI model of a co-op selling outdoor equipment at a low mark-up
o Provided a place for Canadian outdoorsmen to find their outdoors needs without going to the U.S.
• The company reached $261 million in annual sales
• 3.3 million members •Competitors oAcademy Ltd.
•Over 140 stores
oAll located in the southern United States
•Annual sales over $2.7 billion
•Over 17,000 associates throughout the Southeast oBass Pro Shops
•Founded 1971 oDick’s Sporting Goods
•Net Sales in 2011 of $5.2 billion
•Net Income for 2011 of $263 million
•490 stores in 44 states oREI vs. Academy Sports and Outdoors
Academy Ltd. Operates exclusively in the South and Southeastern United States
•REI operates nationwide
oDirect competition in southern U.S.
REI operates 122 stores in 29 states
•Academy operates 140 stores in 11 states
REI net sales are $1.80 billion
•Academy net sales are over $2.7 billion oREI vs. Bass Pro Shops
REI has 4.7 million active co-op members plus other customers
•Bass Pro Shops serves over 75 million people per year
REI began in 1938
•Bass Pro Shops began in 1971 oREI vs. Dick’s Sporting Goods
REI has fewer stores and is less widespread
•They have a more specific market
REI has much lower net sales
•REI sells to smaller market in more specific geographic location Steady Growth in active members and net sales
With continual increases in member dividends
8 stores opened in 2011
Staying true to REI's roots
“Passion for outdoor adventure”
Building and maintaining a sense of community and camaraderie
“Work to inspire, educate, and outfit”
Anderson award Employee Dedication Employee Benefits Cultivation of Company Culture Social Responsibility & Sustainability Grant Program Employees LOVE what they do
Passion for products
Genuine enthusiasm keeps customers coming back
Encouragement and community from other employees
Benefits foster employee dedication Disaster Relief "REI is committed to pursuing environmental sustainability, operating in a socially responsible manner and reporting our progress to employees, members, customers, and other stakeholders." Giving Philosophy Allocate 3% to giving budget
Conservation nonprofits "Whether on the trail, on a bicycle or on the water, we hope you find time to take in the beauty of nature and invite you to join us in a fun and rewarding stewardship
project, caring for the lands and water
close to home."
REI President and CEO Volunteering The REI Foundation Health care plans available for all employees, including part-time and seasonal employees
Annual gift of REI gear
Discounts on gear
REI Brand (50%)
Vendor merchandise (30%) and sale items (10%)
Discounts on REI Adventure Trips Focus on getting young people into nature
5% required by law Sustainability The REI Story. REI Website <http://www.rei.com/jobs/rei-story.html>
Recreational Equipment, Inc. History. Funding Universe. <http://www.fundinguniverse.com/company-histories/recreational-equipment-inc-history/>.
REI, Recreational Equipment Inc., "The Co-op" Since 1938. <http://www.oregonphotos.com/REI-history1.html.>
DuBois, Shelley. ""I work for one of the 10 Best Companies" ." CNN Money. N.p., 20 Jan 2012. Web. 28 Sep 2012. <http://money.cnn.com/galleries/2012/pf/jobs/1201/gallery.best-companies-employees.fortune/8.html>.
"100 Best Companies to Work For." CNN Money. CNN Money, 2011. Web. 1 Oct 2012. <http://money.cnn.com/magazines/fortune/bestcompanies/2011/snapshots/9.html>.
"REI Adventures." REI. Recreational Equipment, Inc., 2012. Web. 1 Oct 2012. <http://www.rei.com/adventures>.
"Featured Program: REI." Volunteer Screening Blog. Recreational Equipment, Inc., 2012. Web. 19 Nov 2010. <http://www.volunteerscreeningblog.com/corporate-volunteer-programs/featured-corporate-volunteer-program-rei/>.
"Newsroom." REI Announces 2011 Revenues and New Member Growth. REI. 12 Mar. 2012.
Exploring the Active Lifestyle." The Outdoor Industry Association. The Outdoor Founation, 2004.
"Product Stewardship." Product Impact at REI. REI.
"Financial Statements and Report of Independent Certified Public Accountants." REI. N.p., December 31, 2011. Web. 2 Oct 2012.
"Our Co-op Roots." Mountain Equipment Co-op. N.p., n.d. Web. 2 Oct 2012. <http://www.mec.ca/AST/ContentPrimary/AboutMEC/AboutOurCoOp.jsp>.
"About Academy." Academy Sports and Outdoors. N.p., n.d. Web. 2 Oct 2012. <http://www.academy.com/webapp/wcs/stores/servlet/AboutAcademy?langId=-1&storeId=10151&catalogId=10051>.
"About Us." Bass Pro Shops. N.p., n.d. Web. 2 Oct 2012. <http://www.basspro.com/webapp/wcs/stores/servlet/CFPageC?
"Dick's History." Dick's Sporting Goods. N.p., n.d. Web. 2 Oct 2012. <http://www.dickssportinggoods.com/corp/index.jsp?page=aboutUs&ab=Footer_Know_AboutUs>. Partnership with VolunteerMatch
Easy sign-up $445,850 August, 2007 26 locations by 2012 end
7% solar powered retail stores Remove all incandescents
Utilize natural light 50% transit subsidy
Use of Internet Outdoor Industry Association Eco-Index
Increase sustainability in outdoor industry
More sustainable transportation and creation of product
Indicators of impact Paper Use
REI's 2011 Stewardship Report
Dropped 6,298 tons
Paper and paper products purchasing policy "REI's intention is to know, share, and adress the environmental and social impacts of each phase of a product's life."
ecoSensitive label (discontinued)
Eco Working Group Every Climber Starts at the Bottom: How REI Began Success as a Cooperative The Whittaker Era New Leadership and Economic Expansion Bringing a Love of the Outdoors to All Corners of the U.S. REI Today The Services The Products Foreign Comparison Future Growth Outdoor School In-store classes In-store and online sales Trips The Awards Half Dome 2 Plus Tent: 2010 Backpacker magazine "Editors' Choice Gold Award"
REI Igneo Sleeping Bag: 2012 Outside Magazine "Gear of the Year"
REI Kingdom Sleeping Bag: Camping Life magazine’s “2011 Editors’ Choice"
REI Airflyte running jacket: Health magazine’s “2011 Gear of the Year”
Online retail store: 2011 Backpacker magazine "Retailer of the Year"
Family and medical leave, paid time off, and personal leave of absence
After 15 years of service, employees are entitled to a four-week paid sabbatical
Higher education Benefits and Discounts Making Time for Adventure Management Techniques Authenticity Quality Service Respect Integrity Balance Employee dedication, employee benefits, and strong company culture