or the co-op. “This plan is not about getting back to what the co-op used to be,” Laughton said in a note to staff. “It’s about climbing the challenging peak that’s in front of us, putting the co-op on more solid footing.” The four-key pillars of the plan are centered on an updated membership program, elevated services and experiences, an improved assortment and driving forward a purpose-led culture. This plan of action comes at a much-needed time for the outdoor gear retailer, considering that in the recent fiscal year, REI had reported that sales fell 6.2 per cent to $3.53 billion, in addition to a net loss of $156.4 million in 2024. Retail experts like Scott Benedict, the founder and CEO of Benedict Enterprises, an omnichannel retail consulting firm, view REI’s recent move as a “necessary recalibration” rather than a retreat. What led to REI’s store closures? As Benedict told Inside Retail, “The brand benefited greatly during the pandemic’s outdoor recreation boom, but shifting consumer priorities, rising costs and a more competitive outdoor marketplace have created margin pressure.” Now, REI’s challenge will lie in balancing a purpose-led mission with the realities of a post-pandemic retail environment – where consumers expect both digital convenience and authentic, experience-driven engagement in stores. Similarly, Global Data’s managing director, Neil Saunders, said, “In many ways, REI is a great retailer. However, it has suffered on several fronts, and that has caused financial problems in the business.” The first issue Saunders noted is that several of REI’s store locations have become less favorable over time because of changes in customer flow and foot traffic, resulting in deteriorating performance.  Secondly, Saunders pointed out that REI has been hit by the general softness in the outdoor category and from increased competition from online players.  “While it still has some very loyal core customers, there is no doubt that players like Dick’s Sporting Goods, Sierra, Backcountry and others have tempted away some more occasional shoppers,” he said.  “This is all exacerbated by a general mood of dissatisfaction internally. The culture at REI has changed and this is causing many long-serving employees to feel more alienated.” A mood which will be further exacerbated by the brand’s recent store closures and further layoffs, since REI already laid off 428 employees – 180 full-time and 248 part-time staffers, at the beginning of the year.  Is REI making the right move? Experts reflect Despite some inevitable angst coming from former and currently-staffed employees alike, Benedict believes that the store closures and layoffs will ultimately lead the brand to a more profitable path.  “CEO Mary Beth Laughton’s four-tier plan – focused on revitalizing membership, assortment, experiences and culture – is the right framework for REI’s next chapter,” said Benedict.  “To succeed, REI must transform its physical stores into experiential community hubs that inspire exploration while deepening loyalty through a more personalized membership model.” In this way the co-op’s 87-year-old heritage gives it an advantage against newer competitors.  “Few brands have such an engaged customer base or the credibility to connect commerce with environmental and social purpose in the way that REI does.” If REI can align its digital and physical assets around that community-driven ethos – offering education, rentals, local adventures, and curated assortments that feel distinctive rather than duplicative – Benedict theorized that it can reignite growth and loyalty.  Despite ongoing challenges in the retail industry, the outdoor category remains strong, with consumers still wanting adventure, wellness and sustainability.  This statement is backed up by a retail report conducted by the Outdoor Industry Association, which confirmed that outdoor market retail sales totaled $28 billion in 2024, up one per cent compared to total sales in 2023.  “REI’s path forward depends on leaning into those motivations with sharper execution and a renewed focus on member value,” he emphasized.  While Benedict remains “bullish” regarding REI’s future prospects, he noted that REI will need to update its model and approach to customer engagement to stay competitive.  Additionally, he suggested that REI will need to take a closer look at its real estate portfolio for some additional “optimization” of future locations for where outdoor recreation has the greatest growth potential.