The Story of Recreational Equipment, Inc.

The Story of Recreational Equipment, Inc.

For a moment, let’s try to remember life before the internet. Prior to search engines and online shopping, the only option to purchase gear and outdoor essentials was stocked on shelves at your local brick-and-mortar store. Today, there are countless online retailers and stores throughout the world that help supply you with your outdoor gear. Many of them have experts as employees who offer advice and share their knowledge about what gear and supplies may be needed for any given adventure.

For many of these online retailers, the outdoor retail road was already paved for them by the preeminent American retail and outdoor recreation company: Recreational Equipment, Inc., better known simply as, REI.

REI spurred a movement 80 years ago in the United States that has inspired and equipped millions to pursue their own adventures. If you find the outdoors thrilling, there’s a good chance that you’ve grasped the ice-axe door handle to enter one of REI’s storefronts. However, the ice axe isn’t just a design element for each retail location, but rather a symbol of the foundation and core of the company’s history.

Lloyd & Mary

In an era before the end of The Great Depression, Seattle-based Lloyd and Mary Anderson realized that there needed to be a better way to buy outdoor supplies and gear. This realization was brought on as the couple were searching for a quality ice axe for their mountaineering. A quality ice axe was $20, which was at the time a very hefty price, yet the only way to get a better price was to rely on the local ski shops that charged a premium and often were overpriced. Through a bit of ingenuity, Lloyd began ordering high quality ice axes directly from Austria, relying on Mary’s knowledge of the German language to translate the overseas catalogs. They were able to cut out the middleman and have an authentic Austrian ice axe delivered directly to them in Seattle for a mere $3.50.

Word quickly spread and friends and colleagues of the Andersons wanted to be involved. This became the motivation and catalyst to help outfit others with quality, affordable gear. Lloyd and Mary began by collecting money in larger batches to increase their buying power to lower the cost of goods for the group. Initially, the idea was simply to help their close friends by equipping them with quality products, which meant better adventures for them together. It was through this impetus that the co-op was born.

Birth Of The Co-Op

In 1938, the Andersons, with the help of a friend that was a lawyer along with twenty-one other Seattle-based adventurers formed the co-op. Each member joined for a $1 lifetime membership fee. The Andersons would then take a $30, no-interest loan to begin selling the gear at their first retail location, a single shelf at a local co-operative grocery store.

As the membership for the co-op began to grow, Lloyd issued a mission statement in a penned bulletin that read:

“Intent of the founders of this organization was to secure suficient membership to make group buying possible; to distribute the goods with as little overheads expense as possible, using membership cooperation with the work as much as possible; to gradually build up a reserve for purchasing stock; to have the mem- bership fee ($1.00) so that everyone interested will be inancially able to join.”

 -November 30, 1938

The concept was simple. Provide imported outdoor equipment for lower prices than it could be done domestically. The cooperative business model surged, even during The Great Depression, with the goal to supply gear at fair prices and return some of the profit back to the members with the purpose of helping people connect with the outdoors, encourage more outdoor activities, and elevate their outdoor experiences. By the end of the first year, membership had more than quadrupled, with members receiving a dividend based on the amount of gear they had bought.

The business would continue to run from the Anderson’s Seattle home, where a majority of the merchandise was stored. But with the company continuing to grow exponentially, they decided it was time to open their own brick-and-mortar location. The new space was located down the hall from The Mountaineers club rooms on Pike Street.

Dawn of the Modern Era

The first full-time REI employee was Jim Whittaker, the first American to summit Mount Everest. He would go on to become the company’s CEO during the 1960s. Whittaker’s achievement to climb Mount Everest would bring REI free advertising and in the subsequent year, 1964, the company’s gross sales topped $1 million for the first time.

Through the decades, REI has expanded their offerings from equipment for serious climbers, backpackers and mountaineering expeditions to include more casual outdoor activities, such as family camping, kayaking, bicycling and other outdoor sports.

As you walk into any of the over 150 REI retail locations, you’re immediately immersed in the outdoor world with exposed wood beams and walls reminiscent of a cabin in the woods. Shopping becomes an experience in and of itself. Rows and rows of outdoor products are precisely placed by category throughout the large open space. Bikes ranging from mountain bikes to road bikes hang from the rafters as walls of outdoor boots can be seen in a distance. Within the larger flagship locations, many of which are multi-level, indoor rock climbing walls for immediate product testing can be found.

Purpose Before Profits

Today, REI boasts 17 million members as part of the cooperative. Co-op members pay $20 for a lifetime membership to join and receive a portion of the cooperative’s profits each year based on a percentage of their eligible purchases, among other benefits. Sure, it’s more than the 1930’s price of $1, but we think it’s still a terrific deal. The company has placed a purpose-before-profits approach to continue the work of the founders to leave the outdoors healthier for future generations. The brand works with many of the outdoor communities’ most trusted brands to help create the conditions for a positive change.

One of these initiatives is the now famous #OptOutside movement, which encourages people to spend more time outdoors on Black Friday. Traditionally a day spent shopping, REI decided to give their employees a paid day off to reclaim the Thanks-giving holiday with friends and family. Since starting this campaign three years ago, over 700 organizations have followed suit to join the effort.

Engaging with the community and giving back to the environment has been a key goal of the company. Much remains the same as it did 80 years ago when the original twenty-one members and the Andersons started the co-op. Since then, REI has helped introduce many new outdoor brands to consumers throughout the country and has even launched their own line of high-quality gear and apparel. The passion for the outdoors and the commitment to promoting environmental stewardship will ensure that future generations of enthusiasts will be able to enjoy the outdoors for decades to come, keeping the legacy of the founding members alive.