REI reported record annual revenues of $2.2 billion, a 9.9 percent increase from 2013, and said it would double its investment in non-profits and new projects to create access to inspirational outdoor places to nearly $8 million.
The co-op reported that comparable store sales, which include direct-to-consumer Internet sales, increased by 4.2 percent. REI Adventures grew by 19.4 percent in 2014. REI Outdoor School grew by 28 percent in 2014 through in-store classes, field programs and day outings.
REI Co-op brand is born: Sales of the REI Co-op brand introduced exclusively at REI stores in 2014 exceeded $1 million within 20 days of going on sale. The initial collection included lightweight, colorful down jackets and vests at affordable prices. Later this year, REI will introduce a deeper collection of “REI Co-op” products that celebrate the company’s history.More exclusive SKUs: Other highlights included REI's growing emphasis on partnering with many other leading brands to offer exclusive gear to its customers. Through an exclusive partnership for the United States, REI now sells premium high-performance bicycles from a leading German manufacturer across its entire fleet. GHOST-brand bikes were introduced online and in REI stores in late February. Since then, interest has been high and new displays in the Seattle flagship store have helped to showcase the new range.Seven new stores: Seven stores opened in 2014, including Fairbanks, Alaska; Flagstaff, Arizona; Knoxville, Tennessee; Salem-Keizer, Oregon; Southlake, Texas; and two stores in Columbus, Ohio. As of year-end 2014, REI operated 138 stores in 33 states. This spring, REI opened in Alpharetta, Georgia, and Princeton, New Jersey, and relocated its Dallas store.Nearly 1 million new members: The nation's largest retail cooperative said it will return $168 million through its annual dividend payment to members, including rebates to REI Visa customers. In 2014, 945,000 new members joined the co-op, taking active membership to a high of 5.5 million.“Joining REI has transformed my view of business. We aim for steady growth so that we can invest in the outdoors,” said Jerry Stritzke, REI’s president and CEO. “That’s a powerful formula that encourages us to think and act long-term. I love being part of the co-op because success for us means giving back to the outdoor community and helping people live life outside.”
REI sells lifetime memberships in the co-op for $20. When the co-op performs well, members receive an annual 10 percent dividend, based on their eligible annual purchases.
“Our momentum reflects the appeal of life outdoors," Stritzke continued. "We have focused hard on giving our members great gear and expertise. Our stores and digital business are doing well, demand for experiences and adventures is up and we are saying a big thank you by investing more in the work our non-profit partners do for our members and the outdoor community.”
In 2015, the co-op will invest $5.7 million in local communities through non-profit partnerships that create access to inspiring outdoor places. In addition, large one-time grants from The REI Foundation will bring the total philanthropic investment to almost $8 million, an all-time high and close to double the investment in 2014. Foundation grants will focus on helping diverse audiences and young people enjoy the outdoors. The first, a multi-year Mary Anderson Legacy Grant to advance women leaders in the industry, was announced in January and 25 CEOs have since joined REI in a pledge to advance women leaders in the outdoor industry. Additional grants will be announced in coming weeks.
