[Snowshovel]

They seem like they are gutting corp. Were they that top heavy? https://www.king5.com/amp/article/money/business/rei-announces-2024-layoffs/281-52d289bf-8ead-4fc5-a887-8c943cbbb43b

[zimmertr]

I would guess that their financials are just pretty lean given that they're a co-op. (Someone smarter than me will hopefully provide financials to support/refute that). But I have noticed that their software salaries are significantly lower than market rate the few times they've tried to recruit me.

[Cyclopath]

Their haven't been profitable for some time (since 2022) and they're trying to fix that. It's hard to believe REI is struggling when so many Americans are living in tents.

[Snowshovel]

All this while they are reaching record gross sales https://www.retaildive.com/news/rei-co-op-outdoor-earnings-net-loss-record-sales/648170/#:~:text=The%20company%20swung%20to%20a,rose%2022.6%25%20to%20%241.8%20million.

[Snowshovel]

[Cyclopath]

REI has closed a lot of stores lately too. They've raised the prices for ski and bike work. This used to be a loss leader for them, they under priced this kind of work but it got people to buy a lot of expensive tires and wax, and people would shop while they had drop in work done. They've raised these prices to reflect market cost.

[Chief Joseph]

It's obviously because REI sucks.

[Anne Elk]

[Chief Joseph]

I was all set to purchase a tent from them but no I would have to join their club in order to make what would likely be a one time purchase, O well, their loss.

[Snowshovel]

[Route Loser]

Consumer co-ops at great scale are a funny beast. An equal vote for officers of the Board and a dividend, and hey, you're a co-op. One can make the case that REI goes above and beyond as a co-op by aiming to ensure a consistent dividend, regardless of net income. While they make a big fuss over commitment to employees, as TJ observed, wages are low yet prices are high. It ends up being the same story as a business of any organizational model. Financials are not lean by design (nor must they be in co-ops), they are simply struggling. REI is poorly managed and has been for a long time. If you know any organizational leadership and systems thinking consultants (and there are more than enough in Seattle), they have probably worked with REI. And they are unlikely to give a stellar review. I still enjoy the place myself.

[Tom]

After 10% dividend, I'm not sure their pricing is worse than anywhere else, especially for brands that don't allow discounts. Combine that with a 1-year return policy, even if you have used the gear and that's pretty much unbeatable. When REI has sales I would say it's pretty much a no-brainer to buy your gear there with the return policy. I don't understand why people complain about REI so much. Probably the best retailer I've ever purchased gear from, and super convenient if you need something quick and they have it in store or if you want to return something. When they are gone people will lament what a good thing it was as opposed to the nauseating not a co-op mantra.

[GaliWalker]

^ I couldn’t agree more!

[zimmertr]

Don't get me wrong, I love buying things from REI. I'm just saying if I worked for them I dunno if I could still afford to. /s Also it's up to 15% cash back if you use their credit card. 😉

[Tom]

When I was a relatively poor college kid and just started accumulating hiking gear, prices at REI did seem somewhat outrageous but I would say that in general for hiking gear. In hindsight, it's not really a huge expense because how much gear do you actually buy in a lifetime? OK, I splurged on a kayak, paddles, and related kayak gear which set me back several grand and pretty much sat in my closet/garage ever since, but legit hiking gear like sleeping bags, jackets, pants, backpacks, tents, boots, poles, socks, shirts, stoves, etc. I doubt I've spent much more than 10 grand, ok maybe 20 If I think about everything. Pretty small expense relative to other purchases like houses, cars, computers, cameras, phones, gas, food, etc. If you can't afford it, you can't afford it, but anyone can get thrifty, even at REI.