Recreational Equipment, Inc. (REI) named a former executive of The Limited and Coach Inc. and a member of the board of directors at Lululemon Athletica Inc. as its next president and CEO.
The Kent, WA-based retailer announced Aug. 31 that Jerry Stritzke will become its seventh president and CEO Oct. 1. Stritzke, 53, had served as president and chief operating officer of Coach Inc. from 2008 through Sept. 2.
On the surface, Stritzke’s experience sourcing and selling lingerie and leather purses may seem an odd fit for REI, a retail cooperative that sells outdoor apparel, footwear and gear. Coach is a vertically integrated luxury brand that nearly doubled sales during Stritzke’s tenure to $5.08 billion, through aggressive overseas expansion and brand extensions. It reported gross margins of 72.9 percent in fiscal 2012. REI, by contrast, has not operated a store overseas since closing its location in Tokyo in 2001 and reported gross margin of 41.6 percent on sales of $1.93 billion in 2012 through its 130 stores in the United States.
However, Stritzke appears as well suited to running the nation’s premier outdoor specialty retailer than his predecessor, Sally Jewell, who spent nearly 20 years in commercial banking before joining REI in 2000 and serving as its CEO from 2005 to 2013. Stritzke’s experience includes running 1,000 Victoria Secrets stores and helping transform Coach into a global lifestyle brand and his deep knowledge of product development and supply chain logistics are well suited to REI, said REI Chairman John Hamlin.
“Jerry brings to REI an outstanding record of success in all aspects of specialty retail, particularly brand building, operations, and customer insights,” said Hamlin, president and managing partner of an Austin, Texas investment firm. “He possesses strategic vision, he knows how to foster a high-performing executive team, and he has proven skills in navigating the disruptive forces that have become the norm in today's business world. We are extremely pleased to have attracted an executive of Jerry's ability to lead REI forward.”
REI’s four-member CEO Search Committee was chaired by REI Board Vice Chair Cheryl Scott, currently serving as interim director for the Bill & Melinda Gates Foundation. The search was supported by a leading national executive search firm and REI said Stritzke was selected from several business leaders interested in the job.
“It's a great opportunity for me to combine my professional expertise with the outdoor activities I personally enjoy,” said Stritzke, an Oklahoma native and former attorney who enjoys hiking, fly fishing and rafting, and each year has a goal of summiting one of Colorado's 14,000-foot mountain peaks.
Stritzke will start in his new role Oct. 1, when interim CEO Brian Unmacht will step down and resume his EVP role. Unmacht resigned his position as vice chair of the board of directors for Outdoor Industry Association to take the interim assignment after Jewell was sworn in as the 51st U.S. Secretary of Interior in April, 2013.
Stritzke and Mike Tucci, president of Coach’s North American group, both notified Coach they would be leave the company July 30, six months after Coach promoted Victor Luis, then president of Coach’s rapidly growing international group, to the position of president and chief commercial officer. Luis is scheduled to take the CEO title at Coach Jan. 1, 2014.
Prior to joining Coach, Stritzke spent eight years with Limited Brands, Inc., the parent company of Victoria's Secret, Bath & Body Works, La Senza, and Henri Bendel. Stritzke began his career at the Limited Brands in 1999 as the senior vice president of operations before being named CEO of Mast Industries, The Limited’s production, sourcing and logistics arm. In 2006, Stritzke was named Co-Leader and COO of Victoria's Secret, where he oversaw the daily operations of more than 1,000 stores. His managerial responsibilities also included product development, supply chain, distribution, and the company's brand growth strategies.
“REI has earned great success over the years and has a bright future,” said Stritzke. “It is a strong brand with a rich heritage and an important mission that connects people to the outdoors. I look forward to working with the talented management team to help the company deliver on its mission, grow profitably, and bring outstanding value to the co-op's members and customers.”
