REI CEO Mary Beth Laughton on How the Co-Op Is Changing, Ecommerce and AI

Why It Matters

Peak 28 positions REI to recover from recent revenue decline while leveraging its unique member base and expertise, signaling a strategic pivot that could reshape outdoor retail. The AI and travel initiatives illustrate how legacy co‑ops can modernize without sacrificing core values.

Key Takeaways

• REI launches Peak 28 three‑year transformation plan
• AI integrated into product pages via employee testimonials
• Travel business relaunched with Intrepid partnership
• Culture and membership program are central strategic pillars
• CEO leverages Nike, Sephora, Athleta experience for customer focus

Pulse Analysis

The outdoor retail sector is at a crossroads, and REI’s Peak 28 strategy offers a blueprint for navigating it. By anchoring the plan in four pillars—culture, product assortment, service experience, and membership innovation—Laughton aims to blend the co‑op’s historic authenticity with the agility required in today’s digital marketplace. This balanced approach addresses the 6% revenue dip reported in 2024, while capitalizing on the 25 million‑strong member community that values both expertise and sustainability.

Artificial intelligence is becoming a baseline capability across retailers, but REI intends to differentiate through human connection. The company is embedding "green vest" employee insights directly into product pages and video content, turning frontline expertise into a conversion driver. Laughton also acknowledges the rise of agentic commerce, planning selective presence on large language models while safeguarding proprietary experiences for REI’s own platforms. This nuanced AI adoption reflects a broader industry trend: technology as an enabler, not a brand‑defining factor.

Reintroducing travel through a partnership with Intrepid illustrates REI’s shift toward asset‑light growth. Rather than rebuilding a costly in‑house operation, the collaboration leverages Intrepid’s logistics while extending exclusive benefits to members, reinforcing the revamped loyalty program. Coupled with lessons from Laughton’s tenures at Nike, Sephora, and Athleta—where customer obsession, emotional loyalty, and mission alignment drove performance—REI is poised to attract both seasoned enthusiasts and pandemic‑new outdoor adopters. If executed well, these initiatives could restore top‑line momentum and reaffirm REI’s status as the most trusted retailer for outdoor lovers.