Presentation on theme: "Kaitlin Coleman Brent Mendenhall Mary Elizabeth Sluck"— Presentation transcript:
1 Kaitlin Coleman Brent Mendenhall Mary Elizabeth Sluck
2 What is REI?“Recreational Equipment Incorporated is a national outdoor retail co-op dedicated to inspiring, educating and outfitting its members and the community for a lifetime of outdoor adventure and stewardship. We offer our own line of high- quality award-winning gear and apparel, in addition to products from the top brands for camping, climbing, cycling, fitness, hiking, paddling, snow sports and travel.”
3 History1936- Unable to find quality ice axes in the U.S. climber Lloyd Anderson sources them from Austria for $3.501938-With help from lawyer Ed Rombauer, Lloyd and Mary Anderson form the Recreational Equipment Cooperative to share quality outdoor gear with climbing friends in Seattle, Washington.1956- Lacking the capital required to form a corporation, the members vote to make the company a non-profit so they can secure LLC status. They form recreational equipment incorporated.1970- REI begins the decade with nearly 200,000 members, two retail stores in Seattle and $5 million in annual sales.1980- One million members, six retail stores and $50 million in annual sales.1990- By the 90’s REI had two million members, over $230 million in annual sales and 26 retail stores.2006- Celebrates $1 billion and annual sales by awarding $1 million in grants to 100 national parks, a total of $4 million in grants for the year.2010- REI begins the decade with 10 million members, 114 retail stores across the nation, and $1.66 billion in annual sales.2012- Current CEO Jerry Stritzke, employs over 11,000 people all have access to health care benefits. $1.93 billion in annual sales.2020- REI pledges to become a climate neutral zone and zero waste to landfill company by focusing on it’s five areas of business: green buildings product stewardship, proper paper usage, reducing waste and energy efficiency.
4 How is REI Successful? Community REI grants funded 397,000 volunteers and 2.8 million hours of volunteer work on public lands.Over 260 nonprofit organizations received funding from REITotal distribution of $3.9 million to nonprofits!
5 Sustainable Operations How is REI Successful?Sustainable Operations20 % of retail locations have solar systems that generate between 15 and 99% of electrical needsInstallation of ceramic metal halide spotlights in stores lowers energy usage by 4.1 million kilowatt-hours per year—enough to power about 13 average stores.Total waste to landfill contributions in 2012 decreased 53 tons from 2011, a 1.4 %reduction.A) Aspiration: Become climate-neutral in our operations by 2020.B) Aspiration: Create buildings that reflect REI's values and minimize environmental impact.C) Aspiration: Become a zero waste-to-landfill organization by 2020.
6 How is REI Successful? Workplace Stewardship Workforce diversity Culture and ValuesOne of the “100 Best”Pay and BenefitsStewardship“Our objective: to be transparent in our actions and hold ourselves accountable to our members, customers, communities and employees.”“inspire, educate and outfit” othersEncourage the active conservation of natureEnhance the natural world and our communities through responsible business practices
7 SWOT Analysis Strengths: Multi-channel retailer with brick-and-mortar stores, an online store as well as a mail catalogCustomer loyalty to the brand, creating communityUtilization of social media to connect with customersProvide customers with a unique in-store experienceGive customers the opportunity to participate in unique “Travel with REI” trips
9 SWOT Analysis Weaknesses: Only have stores in 33 states No stores in the midwest and northeast where there may be demand for an outdoor equipment retailerLimited lines for women & children
10 SWOT Analysis Opportunities: Threats: Open store locations in every state in order to become a nationally recognized brandBegin expanding internationallyExpand their lines for women & children rather than just focusing on menThreats:Amazon.com and other stores with strong loyalty/outdoor focus that offer similar products for cheaperMany try items at REI, but end up finding a better deal online