REI is beginning construction on a 144,000 square foot expansion to their distribution facility in Sumner, WA, near the co-op’s Seattle area-based corporate headquarters. All of REI’s distribution, including internet purchases and in-store pick-ups are handled through this existing 375,000 square foot facility.

Since opening its doors in 1992, the DC’s operations have grown from supporting a network of 24 retail stores, to 76 stores in 24 states by the end of this year. The expansion and upgrade of the facility will support REI’s recent growth, which is expected to reach 84 stores in 25 states in 2005. REI generally increases its store count by roughly 10% per year.

REI Spokesperson, Mike Foley, told BOSS that while the expansion will greatly increase the efficiency of REI’s current distribution, “…we dont think this project alone will serve our all of our distribution challenges in the coming years. We are still looking at ways to improve product distribution to our stores and direct customers particularly on the East Coast. This could include additional facilities within three to five years.”

The systems and equipment that manage product movement throughout the facility will be upgraded beginning next year. REI’s distribution center employs between 350 and 560 full- and part-time employees, depending on the retail season. In addition to inbound, outbound and warehouse operations, the REI-owned distribution facility also accommodates REI’s call center and customer service staff.