REI Co-op reported sales fell 11.9 percent in 2020 as the Co-Op managed through the challenges presented by the pandemic. REI also reported no profits in 2020 but ended the year in a strong cash position and debt-free, after investing millions in its impact work to combat climate change, address racial equity and support its network of nonprofit partners. REI also launched its Cooperative Action initiative.

Sales in the year fell to $2.75 billion from $3.12 billion in 2019.

On February 25, REI had reported that it did not make a profit in 2020 and consequently would not be able to pay out its annual dividend to members; however, the Co-Op added, at the time, that because the year ended better than expected, a special reward would be paid to members.

REI said in a statement Wednesday that despite unforeseen challenges in 2020, it had made investments in the future of its business — selling its headquarters buildings to imagine an entirely new future of office work, taking the company to carbon-neutral, investing in retail pay, committing to racial equity, and rolling out offerings including virtual outfitting and curbside pickup.

“We entered 2020 with incredible momentum after more than a decade of record growth. Then, the entire world came to a halt. We regrounded ourselves in our values, making choices that at times came at great cost to our business. But we took the long view and continued to put our people first, quickly pivoting to find new ways of serving our customers and community,” said REI President and CEO Eric Artz. “That approach turned out to be the right thing for our people and for our business and allowed us to enter 2021 not just in a position of financial strength but proud of who we were when the times were least certain.”

REI said it is now launching the next chapter of that work, inviting its broader Co-Op community to take action.

“Our Co-Op was founded on the principle of individuals coming together for the greater good. Now, the stakes have never been higher for our planet, ourselves and future generations,” Artz said. “Today we’re announcing Cooperative Action—a new initiative to harness the collective power of our 20 million members, 15,000 employee community to combat the most pressing issues facing our industry and society—climate change and racial equity.”

As part of the Cooperative Action platform, REI is inviting members, employees and customers to join its grassroots advocacy network in support of a more sustainable and equitable future for the outdoors.

REI is also asking its community to take action by shopping responsibly and seeking alternatives to new items. Over the last four years, REI expanded its offerings to allow customers to shop for used gear at a lower price either in-store or online and launched a member trade-in program that allows REI members to give new life to their gently used gear.

In addition to offering customers options to purchase used gear, REI is also working to ensure that every purchase supports better ways of doing business. All products in REI stores must adhere to its updated Product Impact Standards, which include expectations for how REI and its more than 1,000 vendor partners are addressing carbon reduction, marketing practices and cultural designs. As part of these standards, all REI Co-op brand products are now certified Climate Neutral in addition to products from over 30 certified brands.

“As a community united by our shared love for life outdoors, together we can drive the progress we need to make towards a more sustainable and equitable future for our planet,” Artz said.

2020 highlights

  • $2.75 billion in revenue;
  • Invested $6.3 million in more than 400 nonprofit partners;
  • Welcomed 1 million new members to its Co-Op;
  • Doubled online used gear sales; and
  • Unveiled its climate platform with the goal to reduce its carbon emissions by 55 percent by 2030.

Photo courtesy REI