What REI is and how the co‑op model works
REI is an American outdoor recreation services cooperative headquartered in Kent, Washington. Founded in 1938 as a single co‑op store, it has grown into a multibillion‑dollar business that sells gear, provides classes and outings, and operates a robust used‑goods program. As a cooperative, REI is owned by its members rather than outside shareholders, which shapes decisions around inventory, services, and environmental and social responsibility. This overview explains how REI is structured, what it offers, and how the co‑op model influences its long‑term priorities.
Membership and the co‑op structure explained
REI operates as a consumer cooperative; when you buy from REI, you become a member. An annual membership fee grants ongoing benefits and aligns incentives between the business and its customers. Unlike public companies focused on short‑term profit, REI is mission‑driven and legally obligated to balance people, planet, and product. Members are invited to participate in governance, and the co‑op reinvests surplus into programs such as environmental advocacy, community initiatives, and enhancing the customer experience.
Key membership benefits
- 15% annual dividend on eligible purchases, effectively a partial refund.
- Access to curated classes, clinics, and guided outings led by staff experts.
- Early access to select products and member‑only events.
- Use of the REI Co‑op app and services such as gear rentals and trips.
Products, services, and retail operations
REI curates a focused assortment of gear and apparel for activities such as hiking, climbing, cycling, paddling, running, camping, and snow sports. In addition to selling new products, REI emphasizes sustainability through programs like used gear resale and repair services. Stores serve as community hubs, offering hands‑on learning through in‑person and virtual classes. The cooperative model allows REI to prioritize durable, repairable equipment and to make decisions that reflect the long‑term interests of its members.
Category focus and assortment philosophy
REI typically emphasizes performance and reliability across core outdoor categories, with an emphasis on brands that meet its standards for durability and sustainability. The cooperative model favors fewer, better‑chosen items rather than a sprawling selection, enabling staff expertise and tailored services that help customers make informed decisions.
REI’s sustainability and social commitments
REI has long positioned itself as a leader in outdoor industry sustainability. The co‑op meets or exceeds environmental standards in its supply chain, operates a robust gear trade‑in and secondhand program, and maintains strict policies on chemicals, materials, and manufacturing practices. REI also advocates for public lands and climate action, aligning its voice and resources with conservation efforts. These commitments are reinforced by the cooperative structure, which encourages responsible stewardship over short‑term gains.
High‑level sustainability highlights
| Area | Verified Detail | Source Type |
|---|---|---|
| Product standards | Restricted use of persistent, bioaccumulative, and toxic chemicals; recycled materials where feasible | REI public policies |
| Used gear | REI Used Gear program resells and repairs equipment to extend product lifespans | REI program documentation |
| Advocacy | Supports public lands protection and climate policy through coalitions | REI co‑op and advocacy reports |
| Packaging | Reduced single‑use plastics; increased recycled content in mailers | REI sustainability updates |
| Energy and operations | Renewable energy purchases and efficiency measures in stores and distribution centers | REI corporate responsibility disclosures |
History and key milestones
REI began as a mountaineering co‑op in Seattle and gradually expanded into a multi‑channel outdoor business while maintaining its core identity as a member‑owned enterprise. Important phases include store expansion across the United States, the launch of its iconic member dividend, and the development of digital services that connect members online and offline. Recent milestones include continued investment in sustainability goals, data‑driven personalization, and enhancing the in‑store experience with expert staff and interactive services.
Timeline of notable developments
| Date or Period | Event | Why it matters |
|---|---|---|
| 1938 | Founded as a Seattle mountaineering co‑op | Established the member‑owned foundation of the business. |
| 1970s–1980s | National store expansion | Brought co‑op model to new markets and outdoor communities. |
| 2010s | Launch of REI Used Gear and repair services | Extended product lifecycles and reinforced sustainability. |
| 2015 | #OptOutside campaign | Highlighted work‑life balance and environmental advocacy. |
| 2020s | Continued digital investment and climate commitments | Supports long‑term resilience and member expectations. |
How REI compares to traditional retailers
The cooperative structure differentiates REI from conventional outdoor retailers. Rather than maximizing short‑term shareholder returns, REI is legally required to balance member interests, community health, and environmental outcomes. This affects tradeoffs in pricing, assortment depth, services, and advocacy. While not the lowest‑price option in every category, many members value the combination of curated gear, expert staff, dividends, and alignment with outdoor ethics.
Quick comparison: REI co‑op vs. typical for‑profit outdoor retailer
| Aspect | REI (co‑op) | Typical for‑profit retailer |
|---|---|---|
| Ownership | Member‑owned cooperative | Shareholders |
| Dividends | Annual 15% dividend on eligible purchases | N/A |
| Decision focus | People, planet, product | Shareholder returns |
| Services | Classes, clinics, rentals, used gear | Primarily transactional |
Digital, loyalty, and customer experience
REI’s digital properties, including the REI app and website, provide product discovery, how‑to content, booking for trips and classes, and member account management. The co‑op uses membership data to personalize recommendations while maintaining transparency about data use. In‑store experiences rely on trained staff who offer advice, repairs, and trip planning. These touchpoints are designed to support outdoor competence and confidence, whether customers are experienced adventurers or newcomers to the outdoors.
Common questions about REI
- Is REI the same as Costco? No. REI is a member‑owned outdoor cooperative; Costco is a for‑profit warehouse club. REI offers a 15% annual dividend and deeper outdoor‑specific services, whereas Costco focuses on broad categories with a membership fee.
- Do you need a membership to shop at REI? No. Nonmembers can shop at REI but do not receive dividends or member‑only benefits.
- Where does REI source its products? REI sources globally and evaluates suppliers against environmental, labor, and quality standards; specifics may be found in public corporate responsibility reports.
- What happens to your membership if you stop shopping? Membership remains active as long as you maintain it; the dividend is earned on eligible purchases, and members receive ongoing access to classes and events.
The bottom line
REI is a long‑standing outdoor cooperative that blends retail with community, education, and environmental stewardship. Its member‑owned structure supports a distinct business model focused on durability, sustainability, and experiences rather than pure short‑term sales volume. For outdoor enthusiasts who value expert guidance, quality gear, and a brand aligned with conservation, REI’s co‑op model is a core part of its enduring appeal.