How does the current global economy affect REI retail operations?


1 Answers

Cormac Reynolds Profile
Cormac Reynolds answered
The current global economy doesn’t seem to be affecting REI, (Recreational Equipment, Inc.) at all. In fact, if you take a look at the recently released figures for the last financial year, sales were actually $1.66 billion, which is a 14 per cent rise on the previous year. Operating income was a phenomenal $115.4 million, an increase this time of 15 per cent. The company’s online and catalog sales made a massive leap of 22.9 per cent.

REI have had the good grace to credit their 9,500 employees for this amazing success in a year of global uncertainty, but the employees can only be as good as their training so ultimately, it is REI who are the total success story. In recognition of their hard work, though, REI have rewarded their employees with a total of $58.6 million in reward incentives and profit sharing plans.

REI are America’s largest consumer cooperative, and every year they share their profits with a patronage refund scheme that is in direct proportion to members’ eligible purchases. On the figures above, this means that $94.3 million has been paid to 4.4 million active members, the biggest amount thus far. If that amazing figure isn’t enough, REI Visa card holders will also receive $35 million in rebates for using their REI Visa cards throughout last year. This means that there will be more than $129 million given back to REI members, this year.

It isn’t just members and Visa card holders that benefit from REI’s success, though. Their ethos gives them a responsibility to the communities where they are based and last year alone REI invested $3.7 million in national and community based non-profit organizations that are dedicated to the conservation of local green spaces. The company has also made a grant of $2.5 million to the REI Foundation, which supports efforts to increase diversity and youth participation in the outdoors.

Answer Question