REI Names Former Sephora Exec as Marketing Boss to Revitalize the Outdoors Stalwart

[Pivo]

In April, REI reported a net loss of $311 million for 2023, which it ascribed partly to raises for hourly employees and its dividend for co-op members. Sales decreased 2.4% to $3.76 billion from 2022, when it reported a loss of $164.7 million.

https://www.wsj.com/articles/rei-names- ... _permalink

[overthehillsfaraway]

@xsproutx
You mean that would be on the knowledgeable employee who was supposed to be helping me, right?
Anyways, here is a plain old sack for 170 dollars.
https://www.rei.com/product/124165/ursa ... -10-liters

They have stools for 60 dollars. Etc. I could go on and on. Any perceived "quality" gain from their overpriced selection is likely just marketing and branding pulling a number on you

[SpiderLegs]

It's very simple, people have money to spend on "have to have" items for their household and limited funds for "nice to have". REI is a store that only sells "nice to have" items.

At the height of Covid, our local store posted this tiny little waif of a woman with blue hair and crazy eyes to monitor the front door. She turned into the door Nazi yelling at everyone going in and out to make sure we were in lockstep with their policies. Now I spend most of my money locally at Summit Hut.

[xsproutx]

Anyways, here is a plain old sack for 170 dollars.

Considering that you're posting a certified grizzly proof ursack like I had mentioned before vs "a plain old sack" I think I'll stick with what I've said. There are many jurisdictions that require a bear canister that will let you bring one of those instead (there are also some that don't even allow those of course). Hardly a plain ol bag out of silpoly or silnylon. Whether that price is worth it to save the weight/bulkiness of a can is up to you, of course, but I'm not able to find anything *that's similar* that is cheaper.

Back to the original topic, though. When I've talked to these execs the general theme is what's been touched on here already: capex expenditure for new stores and people have less disposable income at this time. One other big theme is they believe that covid effectively saturated the market. IE, in normal years you expect a certain number of new customers to come to the business for "big investments" and then there is what's known as the long tail once you've captured that customer (IE, they buy a tent/backpack/sleeping bag but then over the next couple of years, they're buying smaller things like meals, shoes, etc). There is certain data to show that they essentially captured more new customers in covid and, while they have the long tail of those, they're not bringing in the same number of net new customers because they were captured early. This is one of the reasons you see an increase of soft lines at the stores: that's what the long tail has traditionally spent money on, which makes sense (people buy new clothes once a season for example). Unfortunately, clothing has gotten more expensive and niche-designed clothing was always more expensive than "regular" clothing anyway, so you run into the aforementioned problem with disposable income.

For what it's worth, their internal data and a consulting firm they've hired "shows" that they've lost minimal business due to perceived politics. I'm not exactly a fan of consulting firms and haven't seen the source data and know that everyone has their own perceptions, so feel free to take that with a grain of salt.

Reading between the lines of this hire, I don't think win over many of you in the future Based on her experience, I expect them to double down on "brands" and clothing but to bring more stratification to it (add items on the lower end of the price point and additional at the higher end). Perhaps those lower price point items will bring some people back.

[Jim]

Maybe. Price point aside, some things are not in the control of the retailer.

I was never a Walmart shopper until last fall. I did buy pants every so often at REI and probably paid too much. I did not mind if I liked them. I have been unable to find pants that are not super tight, and loaded with spandex, even at REI. I was buying a size 30 waist last fall and bought my pants at Walmart as it was a last resort and they had old style Wrangler pants with 2% spandex, which seemed to be low enough to not make a difference if I also got relaxed fit. That they are fairly cheap is also nice.

[LindaAnn]

We need a haz poll: How much have you spent at REI in ‘24, not including dividend redemption?

$0
$1-100
$101-250
$251-500
$500-750
$751-1000
$1000+

[chumley]

I have been unable to find pants that are not super tight, and loaded with spandex

Seriously. What is up with this trend? Momjeans were apparently great in the 90s. For moms. Do people actually like stretchy jeans? Or is it woke marketing executives pushing stretchy crotch materials to fit any new equipment that people choose to add to that region?

[xsproutx]

@LindaAnn
500-750 here. Half that was a bike for my daughters birthday, the rest were a couple sun hoodies/a pair of shorts/bike rack/gas cans. I've complained about how the QA for REIs brand products has gone to crap but I still absolutely love their sahara sun hoodies.

[Jim]

I have been unable to find pants that are not super tight, and loaded with spandex

Seriously. What is up with this trend? Momjeans were apparently great in the 90s. For moms. Do people actually like stretchy jeans? Or is it woke marketing executives pushing stretchy crotch materials to fit any new equipment that people choose to add to that region?

I know I sure don't. Some guys seem okay with it, but I know myself and @PrestonSands do not enjoy the idea of wearing revealing pants that are very tight and lift and separate our buttocks. Something these pants and shorts tend to do. I get that women want them, but men? It's a weird trend that needs to end.


I think I spent about $300 at REI, on my shoes, but don't really know. I get them where I can get them in my size and for a good price. Might have been at amazon, too.

[LosDosSloFolks]

@chumley @Jim_H
On the topic of spandex "pants" for men. Starting with the European players, my beloved PGA Tour has become the new home for something called a 'jogger pant', although I can't recall ever seeing any man jog in these. https://primogolfapparel.com/products/p ... 2449199177
Maybe I'm just becoming a geezer, but I'm embarrassed for my old profession. Too many phytoestrogens in our food maybe.

[chumley]

@LosDosSloFolks I'm going to quit my job and start a new retail clothing store called "Get Off My Lawn!" which caters to people like us who otherwise bitch and complain about the way that things used to be. We will sell all kinds of discontinued items from a storefront in a mall that now consists of apartment homes and pickleball courts. It will be open from 10-5 weekdays and closed on weekends. Employees will be free of tattoos and piercings, and natural colored hair will be trimmed no longer than the shoulder. Purchases will be paid by cash or check only and receipts will be provided on handwritten forms duplicated with carbon paper. I'm sure I'll be able to add some other key features to reinforce the brand as time goes on. I expect to get a solid customer base from offering a HAZ member discount.

[LosDosSloFolks]

@chumley

[LindaAnn]

@xsproutx
Ursack Allmitey 10l:

REI $170 (with a 10% dividend returned to you next year, but you’re still out the full cost initially)
Backcountry $161
Dick’s $135 (not sure if that’s a short term deal, but that’s the price today)

Most all other retailers were $170. I’m not a fan of Dick’s (stop giggling, Chumley & Bruce), but I’d go there for the much better deal. From an overall price point, REI is rarely the best choice.

From a clothing standpoint, I have a ton of preferred retailers I get my hiking/outdoors clothing from, but I’d choose Scheels or Bass Pro/Cabelas over REI for a last minute shopping trip.

[Alston_Neal]

It will be open from 10-4 weekdays and closed on weekends. Employees will be free of tattoos and piercings, and natural colored hair will be trimmed no longer than the shoulder. Purchases will be paid by cash or check only and receipts will be provided on handwritten forms duplicated with carbon paper.

Jeez you just described our biz.
But we do take credit cards, Zell, Paypal and of course our best friend Benny Franklin.

[xsproutx]

@LindaAnn
Oh agree that you can find the same product available for cheaper at times in different places as that's how sales work. It's not the same as a plain old bag you can buy for 20 bucks off amazon, though, which was my point. Previous poster clearly is comparing things that aren't the same.

For clothes, that's always a fun topic. Everybody has a different body and some brands work better than others for different body types. For me, I haven't found a sun hoodie I like as much as the REI sahara one that doesn't cost double, so that's what I choose. For shorts, I'm a big fan of a specific cotopaxi one that I can't find except online or REI. Not saying they're the best by any stretch (my wife actually HATES that sun hoodie) but yeh, clothes are personal. You find something you like, you tend to stick with it until they change it and screw it up like they always eventually do sadly

Frankly, that's why the stretchy jeans are a thing: women have a lot more variability with body shapes than men and the elasticity allows the same item to fit different sizes and then for the men in the world, america is generally obese with different shapes and leads to the same issue... thus, many brands making things stretchy. Like anything, though, you can still find wonderful nice denim easily that doesn't stretch so the choice is yours.

As chums alludes to above, I think hikeaz (at least, the people active on the forum) tends to skew to an older crowd which may be used to what they've worn and used over the years (which is fine!) and discount how fabric/technology/etc changes. I mean, hiking in jeans? Avoiding gear that favours flexibility and breathability? Associating certain things with being feminine just because they're not loose? Nah. I'll choose comfort.

[LindaAnn]

@xsproutx
My point is, REI is generally more expensive than their competitors. Throw in unhelpful employees, and all the other issues I mentioned, and there’s very little compelling reason for a lot of consumers to choose REI. Sure, they have plenty of loyalists, but outside of that, price, selection, and proximity are going to be huge factors in whether or not someone chooses to shop there. They certainly don’t excel in price.

I know I have no intention of ever shopping there again, and it has nothing to do with price and everything to do with their corporate viewpoints. I easily shop more in one month than most people do all year, but usually not at companies like REI.

[Alston_Neal]

I’m not a fan of Dick's ( Chumley & Bruce),

That's a bit harsh, yeah they can be annoying, socially inept, but they have..........skillz
The only reason we shop at REI is it is on our way home from work, Sportsmans is our prefered place for the finest things from Chyna.

[LindaAnn]

@Alston_Neal
The countdown to this thread getting locked has now begun…

[Pivo]

No longer living in a larger metro area, my new default is strictly online purchasing for almost everything, except groceries. Most of my outdoor gear is purchased from Amazon/ REI/ Backcountry. I am always trying to leverage the CC points with the Chase Amazon Prime Card, or the REI MC from Capital One.
There's a new REI opening in Durango in 2025!

[SpiderLegs]

I rarely purchase anything in the store at REI anymore. But thanks to their fashion forward sales model, they often have lots of overstock on their website's clearance section. Found the clearance section to be a good way to find clothing and shoes at a substantial discount. Plus with their distribution warehouse being in the West Valley, I get the items almost as fast as I get items from Amazon.

[Jim]

For the size of the town, REI opening a new store in Durango, CO says a lot about their brand/corporate image/who buys from them. Not saying it isn't a nice place to have an outdoors store, especially if you traveled to the place and need something, but for the overhead their retail stores have, that kind of business probably isn't what their research showed that caused them to open a store there. Maybe those luxury brands are their primary driver after-all? Am I out of touch with the average REI shopper? No! No, it is the REI shopper that is out of touch with me.