REI is Laying Off 275 Employees
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What's the interesting angle of this story?
I wonder how common it is as a clothier of hackers. For the past few years I think I end up buying a lot of their lightweight hiking pants for travel and office work. And REI is the best store I’ve found to actually go in and check out stuff before buying.
This is true, I did acquire some of REI's water containers and blankets when I used to vanlife. The good thing about REI is they often have good bicycle mechanics, but they're encumbered by many corporate regulations. If you're more DIY, you're probably better off going to a local bike shop who can do major things like scooter brake replacements.
Anyone not from the US: REI is a fractional employee&customer co-op, brick-and-mortar glamping mecca that also sells sporting goods, hiking gear, and Birkenstocks.
1. It's a sign that the tech layoffs are part of a more general wave of layoffs
2. Most of the layoffs were on their eCommerce platform
3. If there was a blame towards Amazon. Just as an anecdote, I recently bought a whole set of camping gear on Amazon for about a third of the price as REI (and actually for cheaper than their rental rates.) Quality might not be the same, but I don't really need anything heavy duty.
The employees being laid off are self-reporting as long-time employees that have worked their way up whatever ladder there was and have shown loyalty to the company.
Who will replace them? Chatter on the post say it may be PT workers with less experience in the company as well as in their niche.
That's unfortunate, but is a pattern we're seeing in many different companies as large and larger than REI. The outcome is not always great.
really useful if you have a predilection for camping on the sidewalk
I have spent a few thousand bucks at rei over the past 10 years. I rarely if ever ask for assistance. The value add for me is the return and warranty policy, and knowing if REI sells it it's probably high quality.
The more experienced people are also the most natural and kind, where others seem less committed and less "of the hobby".
Layoffs suck. Good luck to all of them.
Usually MSRP is constant across retailers. Is there an example you can easily bring up? If there's a price for an item that's too good to be true, it's usually a scam website.
Do remember Amazon is getting in deep water for all sorts of things that basically boil down to price fixing, so there are many factors at play for MSRP being solid across the board.
A gallon canister of Coleman fuel is $19 at REI, and $14.98 at Wal-Mart.
https://www.outsideonline.com/business-journal/retailers/mec...
Is REI being zombified the same way?
"yesterday a unanimous decision by its board of directors to sell substantially all of its assets to Kingswood Capital Management"
> the elimination of the co-op structure is “needed to ensure a stable future for MEC’s retail business.” In 2019, the retailer lost a reported $11.487 million on annual sales of $462 million, a slide that capped years of disappointing performance for the company
> In the end, however, the board concluded that the only realistic path forward was a sale to Kingswood.
Doesn’t sound like there were a lot of bidders clamoring to take it over. Holders of $5 shares may have had a realistic option to get $0 by not selling or $0 by selling.
post bankruptcy they're rebuilding their own-label stuff, and at least in calgary there seems to be more staff in the store and the product mix is shifting back towards stuff i can't find in other local stores.
I have mixed feelings here. I’m a longtime REI shopper and I personally haven’t ever interacted with a “team lead” (role laid off). I mostly order online and sometimes browse their used gear section while in store. I rarely talk to the employees, and to be honest the ones at my store seem kind of annoyed most of the time.
On the other hand laying off senior team members is a speedrun nuke of employee morale. You’re taking a place where people thought they could work for years and basically showing them there’ll be no career progression.
However, their website gives free shipping for $50 and is the same price as in store. One of the most insane and obviously virtue signaling policies I've ever seen.
I haven't bothered going in person since, and often these stores live off getting you to buy things you don't need when you go in person.
I submit that people will adjust to this, I sure have, and that the real solution is for more stores to do it so that it seems normal.
After an initial adjustment period overall I’ve been happy with NY’s law change on plastic bags at the grocery store. It always bugged me a little bit that we feel the need to put something like a single bag of chips into another bag when you buy it (real thing I witnessed plenty).
At least you can use them to store nails, I guess.
Virtue signaling example: x bags received and delivered directly to landfill instead of to customer at checkout, y boxes online, x + y = z
Apparent reality: 0 bags received, y boxes online, 0 + y = y
If y is significantly less than z, we are forced to discard the claim of virtue signaling given that a measurable reduction in overall waste is a measurable reduction in overall waste.
in store pickup doesn't necessarily mean less materials.
Where i grew up this has been banned for more than a decade.
Emphasis mine. Sounds like OfSanguineFire's comment is right. The Governance committee decides how the company is run and members don't have a choice of candidates besides rejecting them.
From Wikpedia: https://en.wikipedia.org/wiki/REI
> While the board serves at the members' pleasure, there is no path to board membership without the approval of the Board Nomination and Governance Committee.[30] For 2014, its chief executive officer received compensation of approximately $2.71 million per year.[31][32]
And if they are rejected, then the board appoints a temporary board member to fill the opening, with no membership input.
I know there are all of these sporting goods stores, but it’s supposedly a co-op owned by the members, of which a sizable population of this country are, yet the board is not in any meaningful way elected or nominated by the membership.
REI is a really interesting company. Kinda seems like someone stole a co-op a while back.
You can read about the election process here: https://www.rei.com/about-rei/board-election-process
(Naturally, they're not perfect -- so they're known for putting small shops out of business when they arrive and for becoming more faceless to some of their employees as they grow.)
Since 2013 it appears to be a one-year return policy. That's shorter than the warranty on most of their clothing brands (basically "forever" excepting long underwear), and about equal to warranty on most of their footwear brands.
For "vectorizing" returns-- e.g., dealing with multiple pieces of clothing/gear-- it's probably quite convenient to be able to return a bunch of stuff at once to an REI physical location.
For a single item exchanges or replacements, it's probably just as easy going through the vendor's warranty form on their website. In fact, most of those companies have stellar customer service on the phone.
And I do mean stellar. Like, imagine the exact opposite of Gmail's tech support. Honestly, if you have a broken zipper on a recent Patagonia jacket or a cracked buckle on an Osprey pack, call their customer support and enjoy the maximally productive humane conversation with someone who is truly interested in helping you, the customer of their company. It may restore your faith in humanity (though potentially at the risk of making you question your line of work in ad tech, so be warned...)
Sadly not so much. Now it’s a one year limited warranty and I’ve been hassled about returning things because they ended up not fitting right.
They used to be great and would take anything back for any reason. And this always led to me buying tons more stuff.
With the new policy, I buy much less. Especially since the REI brand is pretty low quality now and no one supports it other than REI during that year.
But then I had a person who worked there in my friend group at one point and they told me the same stories you did. Just people absolutely abusing the heck out of it, taking maximum advantage for personal gain. Doing things like buying kids shoes then returning them when the kid outgrew them.
This behavior is highly unethical in my opinion, even though it was technically legal and within policy. So I was happy when they made the change to 1 year returns. I had rarely, rarely had long term returns like that and took them very seriously. In one case, for example, I had a tent for the summer that I never got around to using. Used it about 1.5 years later for the first time and quickly realized it didn’t work for my needs so reluctantly returned it after one use.
Anyways, people are awful.
Can't have nice things, dang it.
But I had the zipper break on my duffel bag after about 5 years and they told me they wouldn’t help. This wasn’t a crazy drop or mishandled, it was just some defect that caused the zipper to pop off one side when it shouldn’t.
I’m never buying anything from their line again. Had I gotten a Patagonia duffel, they would fix a zipper decades later.
Patagonia is drastically more expensive than REI gear, but included in the higher quality is a better return/repair policy and ethical manufacturing standards. REI is competing on price, not those standards.
/shrug
Not tech related.
https://www.mckinsey.com/industries/consumer-packaged-goods/...
We are going back to normal. Maybe REI hired for the insane bubble continuing?
Ten bucks of blankets from the thrift store, no tent, for instance. (The blanket fort remains one of my all-time favorite episodes.) Or a tarp and some straps from the hardware store. Or those $0.99 mylar "survival tent" things, what's the experience in one of those actually like? Another classic is the "can you make a tent from bubble wrap and survive in it in the dead of Canadian winter?"... No spoilers, but it's hilarious.
I forget which episode he explains it in, but the idea was that he was sick of seeing all the glamping channels with expensive gear in exotic locations, and their implication that camping and being out in nature was somehow a luxury for the rich, when it should be, no, it IS, everyone's to enjoy.
From there, his focus grew to the locations themselves. Opposite of exotic. Downright silly. Behind billboards, in a storm drain culvert, in the landscaping in the middle of a suburban roundabout... Not only can you camp without gear, you don't need a campground either.
I used a summer sleeping bag that was 14 oz after I cut the zipper off (Marmot Pounder, which I wish they still made).
I had a "blue foam" sleeping pad that was cut down to size, which is extremely cheap and light. I now opt for much heavier sleeping pads. When cowboy camping along the AT you do not need much of a sleeping pad because you'll likely be on top of leaves, but on a shelter floor it's not enough.
For shelter, I just had a 6 oz sil tarp for when an AT shelter was full and I expected rain. I set up the tarp exactly once, and it didn't rain anyways.
My spare clothes were a spare pair of socks, a fleece shirt, fleece gloves, and a fleece beanie. None of those were expensive. I had a $0.99 plastic poncho for rain gear.
I did not cook, so no cooking gear. I had a digital camera which I barely used. And then just small stuff like toothbrush, water treatment drops, etc.
My base pack weight was like 6 lbs and change, and I had a tarp and camera I wasn't really using.
So, yeah, you can hike extremely light and not spend a lot of money. It depends on what trip you are doing. I started very late in the season, so the weather was warmer and shelters were not full.
I resupplied food in towns along the way. And while in town, I had a hot meal there. Also consider that resupplying is often not done in an actual town, but in a convenience store or whatever is closest to the trail.
Backpackers typically only cook dinner, and those get repetitive, so forgoing those with the added benefit of not carrying a stove, fuel, and a pot is sometimes nice. Some people find it wearisome to not have at least one hot meal a day.
Of course, I have done countless backpacking trips and have cooked on most of them.
We haven't even gotten to clothes.
Edit, to add: or you’re not counting all the gear your pack animal is carrying.
Sure, if you really are in the wilderness. But if, like so many of the weight weenies interested in UL gear, you are hiking a well-trodden trail where water stops are frequent and well-mapped, no one is going to lug that weight until the end of the day when they might fill up for cooking with.
I like experiments in having employees actually own companies, or make their own decisions, but the closest I see in the consumer facing sector is stuff like REI or Valve software maybe — and that is only at the pleasure of its actual owners.
By contrast, HOAs and housing cooperatives like Mitchell-Lama, or credit unions, are truly owned by their members. A growint number of DAOs online are as well.
Most universities have an element of democratic governance as well.
Other than that, most other concerns is owned by outside shareholders, with some shares often traded on a public stock market, but the ones who call the shots are the same people who sit on each other’s boards and lobby Congress etc.
Of course I know it is a consumer co-op as a member but for some reason I’d always thought about it as pro worker because I associate “co-op” generally with the labor movement. Worker co-ops would be of course but that’s not the case here.
They use the good name of a COOP to get people to think that they are a good organization, when in fact they are just like every other blood sucking corporation out there - but worse cause they hide their intentions.
I doubt anyone really cares, and it's not open nominations.
https://www.rei.com/help?a=Can-I-receive-my-Total-REI-Reward...
That's pretty lame.
I think a membership co-op that is run to benefit its members should lower the fee by $5 or at least let them choose where the $5 goes.
It's a CONSUMERS CO-OP, has nothing to do with real labor organizing
It's capitalism's attempt at providing security to consumers (rather than simply landlords) against producers and laborers.