REI’s secrets to sustaining a beloved brand and touching grass

Summary of REI’s secrets to sustaining a beloved brand and touching grass

by WaitWhat

28m•October 20, 2026
Listen to Episode

Overview of REI’s secrets to sustaining a beloved brand and touching grass

This episode of Rapid Response features REI CEO Mary Beth Laughton discussing how she’s trying to steady the iconic outdoor co-op after a turbulent period marked by losses, internal tension, and shifting retail dynamics. She explains how REI’s unusual member-owned co-op structure shapes everything from strategy to advocacy, why the company is leaning into its in-store “green vest” expertise even as AI and digital shopping reshape retail, and how she’s applying lessons from Nike, Athleta, and Sephora to help REI stay relevant for the next 88 years.

What REI is trying to fix

The core challenge

  • Laughton joined REI to help reverse:
    • Post-pandemic losses
    • Member engagement concerns
    • Internal discontent and labor conflict
  • Her first major move was to create a strategic plan called Peak 28 after spending her first months listening to employees, customers, and partners.

The long-term goal

  • REI’s biggest question is how to remain a healthy, mission-driven co-op for decades to come.
  • Laughton frames the job as balancing:
    • Profitability
    • Member value
    • Mission and values
    • Brand heritage

How REI’s co-op model works

Different from a traditional retailer

  • REI is the largest consumer co-op in the U.S.
  • It has 26 million members and no shareholders.
  • Members pay:
    • A $30 lifetime membership fee
    • Receive a 10% annual dividend on purchases
  • REI also offers member benefits like:
    • In-store classes
    • Partnerships such as discounted access to AllTrails

Why that matters

  • REI still has to be profitable, but it’s not driven by quarterly earnings pressure in the same way public companies are.
  • Laughton says the co-op model lets REI think more about sustainable long-term growth.
  • The company’s purpose is reinforced by a simple logic: the more profit REI makes, the more it can invest in its mission.

Retail strategy: human expertise in a digital world

The “green vest” advantage

  • REI’s employees in green vests are central to its brand.
  • Their real-life outdoor experience creates trust and helps customers choose the right gear.
  • Laughton sees this as a major differentiator that should carry into digital.

Adapting to changing shopping behavior

  • REI is working to make its online experience feel more:
    • Personal
    • Emotional
    • Seamless with store shopping
  • The company is using employee-created product videos and embedding green-vest expertise on product pages.

AI and discoverability

  • Laughton says REI has to be visible not just on its own site, but also in chatbots and AI-driven discovery tools.
  • Her view: AI is not a passing trend; it’s a fundamental shift in how consumers shop.
  • REI wants to be:
    • Discoverable in AI environments
    • Strong on its own app and website
    • Present where customers naturally are

Values, public advocacy, and politics

Standing up for public lands

  • REI’s values around community, conservation, and public access shape its public actions.
  • The company supports public lands through:
    • Donations
    • Policy work
    • Member advocacy campaigns that encourage people to write to policymakers

The Trump-era controversy

  • Laughton addressed REI’s earlier support for a Trump administration Interior nominee and said the company later rescinded its support.
  • She described that as a mistake and said transparency and accountability mattered.
  • Her takeaway: REI needs to listen closely to its members and avoid actions that conflict with its values.

Labor tensions and the boycott

Ongoing union bargaining

  • The episode touches on a boycott organized by union members.
  • Laughton says REI is still bargaining in good faith.

Why the boycott was painful

  • She argued the boycott was counterproductive because better sales help fund employee compensation and bonuses.
  • Still, she acknowledged the emotional weight of the situation and the need to keep showing up and listening.

Lessons from her career

From Sephora

  • Learned the importance of seeing where the customer is headed
  • Helped grow the digital business from about $250 million to over $1 billion
  • Early shift toward mobile proved critical

From Athleta

  • Learned that mission and growth can coexist
  • REI, like Athleta, can make values-based decisions even when they raise costs
  • Example: inclusive sizing that increased product costs but aligned with the brand’s values

From Nike

  • Reinforced the idea that brands must protect what makes them special
  • Also underscores the risk of losing momentum if a brand drifts from its core identity

Key takeaways

  • REI’s co-op structure is both a constraint and a strength: it demands profitability but gives the company room to think long-term.
  • Human expertise remains REI’s moat: the green vests are still central, even as digital and AI reshape retail.
  • Values are strategic, not decorative: public lands, inclusivity, and member trust are treated as part of the business model.
  • AI is unavoidable: REI plans to adapt rather than resist, while staying responsible.
  • The mission is the north star: Laughton’s biggest job is keeping REI healthy enough to serve members and the outdoors for another 88 years.

Notable insight

“The more profit we generate, the more we can put toward our purpose.”

That line captures the episode’s central theme: REI is trying to prove that a mission-driven business can still be commercially disciplined, digitally relevant, and culturally trusted.