What: REI missed its sales target, but increased its donations to communities and projects.

Why it is important: Retailers should expect to increasingly erode their margins to contribute to improving society. Customers are increasingly expecting it.

REI Co-op, under CEO Eric Artz, reported a total fiscal year revenue of $3.8 billion, marking a 2.4% decline due primarily to erratic weather conditions in the fourth quarter. Despite the decrease, the company maintained a strong commitment to environmental and social initiatives, redistributing nearly $270 million into its community, including significant investments in employee benefits and sustainability efforts. Notably, REI achieved a 6% reduction in its greenhouse gas emissions from its 2019 baseline and sourced 100% of its energy from renewable resources for the 11th consecutive year. The company also emphasized inclusivity and diversity through its Racial Equity, Diversity & Inclusion (REDI) programs and furthered its societal impact with the launch of the Outside in 5 mission, aimed at increasing outdoor access.

Furthermore, REI partnered with Biolite to support clean energy solutions in Saharan Africa and continued to expand its Re/Supply program, which repurposes used merchandise. Despite a net loss of $311 million in 2023, due to continuous investments in employee pay and other initiatives, REI's focus on community enrichment and environmental responsibility underscored its broader commitment to social causes over profits. The company also grew its co-op membership base by 1.4 million, reinforcing its model of returning profits to its members, who can join for a lifetime fee of $30.

REI Co-Op Invests $270 Million To Global Communities Despite Sales Miss