REI CEO Dennis Madsen will be retiring following the companys annual general meeting at the end of March, 2005. Over the next 10 months he will assist Sally Jewell, current COO, in transitioning to the role of CEO.
BOSS caught up with Madsen just before he left to climb Mt. Rainier with a group of old college friends. He said that after March he will be doing much of the same thing he is doing this weekend climbing, cycling, outdoor adventure, and adventure travel. On his list are trips to Nepal, the Andes, and Antarctica.
Madsen will also continue to serve the non-profit organizations which he has been a part of for so long.
“I really believe there are two areas where I can help out. Number one, the education system in this country needs an overhaul. Number two, parks and open spaces are terribly under-funded and under-maintained. Someone needs to step up and be the champion here if anything is going to change.”
When asked what he will miss the most about leaving REI, he responded without hesitation, “The people, the people are what drew me to REI in the first place the passion, commitment, and energy that everyone exhibited. At the end of the day it really isnt about the money, its about loving what you do.”
Madsen is certainly leaving the company on a high note. He told BOSS that REI continues to post record numbers. Following the companys anniversary sale, comps were up 12%, retail sales were up 17%, and consumer direct sales were up 44%. Comp store sales for the year at REI are up 8%, and profitability has improved by $8 million over the same time last year.
He said that the eight new stores REI has opened in the last 18 months have been a “tremendous success,” with “hundreds of people waiting outside the new Las Vegas store on opening day, and we werent even having a sale.”
Madsen also said that with Sally Jewell taking over, some change is inevitable, but, “Her vision for REI does not differ drastically from the direction in which the company has been going for the past three decades.”
Madsen continued, saying that Jewells interest and focus on multi-channel retailing will probably show itself, and her passion for involving children in outdoor recreation will also become apparent, but the pair has similar, “outlooks, hopes, agendas, strategies, and vision.”
Jewell joined REI as COO in 2000, after serving as an elected director on the company's board for four years. She presently oversees REI's customer-facing divisions including retail, multi-channel programs, direct sales, merchandising and marketing. Prior to REI, Jewell's career spanned nearly 20 years in the banking industry. Jewell is a lifetime outdoors person and lists among her interests hiking, biking, mountaineering, sailing, skiing and snowboarding.
