chain’s operations has been in existence for nearly 40 years, the decision to shut it down coincides with more consumers looking toand enjoy outdoor pursuits. Industry observers weighed in Thursday about how the closure of REI’s Experiences could potentially impact the brand and the industry.reported $3.76 billion in revenue in 2023, a 2.4 percent decrease from 2022. It reported a $311 million net loss in 2023. The company has more than 190 stores across the U.S. and 15,000 globally.
As for REI, Nate Pund, global head of the active lifestyle investment banking team at Houlihan Lokey, said, “I understand the decision and the need to save , shed costs and return to profitability. But I am concerned that this may be a poor decision in the long term in terms of broader member experiences and being a differentiator of what REI is.”
As REI chief executive officer Erik Artz said Wednesday, the costs of running this business, including marketing and technology, resulted in the loss “of millions of dollars” every year and required subsidizing Experiences with profits from other parts of the business. During its more than 40-year existence, Experiences catered to nearly one million people.