REI Case Study

Every day is better when you #OptOutside

For the past three years, REI (Recreational Equipment, Inc.) has skipped the Black Friday frenzy by closing their stores and giving employees the day off with pay.  Millions of people have joined them outside.  On REI’s website, they have included this link with pictures of outdoors submitted by customers under various hashtags - #getoutside, #utah, #pnw, etc. with the caption “#OptOutside is all about you.”  “Let’s get outside every day.  Join us.”  With the earned media attention they received for closing on Black Friday, REI keeps the adventure going.

REI is an outdoor sporting goods company founded in 1938 by a group of 23 Pacific Northwest mountain climbing buddies who wanted better ice axes.  It is now the nation’s largest consumer cooperative, meaning it is a company owned by its members.  Each eligible member is entitled to vote in the election of the Company’s Board of Directors.  Members receive dividends - approx. 10% off non-sale items, plus member-only discounts twice a year.  In 2016, the number of eligible voting members was 6.3 million.  They have 154 retail stores and sell online at rei.com.

REI’s value proposition is a life outdoors is a life well lived.  Quality outdoor gear and clothing - 100% satisfaction guarantee - and a cooperative that puts people first.  They gave 70% of profits to the outdoor community by funding grants for non-profit organizations to make the outdoors accessible to all.  Members, employees and customers volunteer together to build outdoor trails, restore local habitats, and clean up beaches.  Their core purpose guides everything they do:  “We all work to inspire, educate and outfit for a lifetime of outdoor adventure and stewardship.”

Advertising expense for 2016 and 2015 was $71.6 million and $72.6 million, respectively.  Interesting to see they spent $1 million less in 2016 than 2015.  Could it be because of their #OptOutside campaign?  In 2016, revenues grew 5.5 percent on 2015 to $2.56 billion.  REI invested $9.3 million in nonprofits (including one-time REI Foundation grants) and in 2016 gave back $193.7 million in dividends and credit card rebates to members.  They have been on FORTUNE magazine’s list of the “100 Best Companies to Work For” every year for the past 20 years.  

I think their marketing is strong with the continued use of social media and sweepstakes and have no recommendations to the marketing team.  Their website includes their blog with stories of life outdoors in addition to #OptOutside.  They are true to their mission and show consistently that they care about people.  Even their job descriptions begin with undeniable positivity “What’s cool about this job” and end with “Why you’ll love it here.”