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REI Co-op Shakes Up Leadership: CEO Eric Artz Exits as Outdoor Retailer Battles Financial Headwinds

REI Co-op Shakes Up Leadership: CEO Eric Artz Exits as Outdoor Retailer Battles Financial Headwinds

REI Announces CEO Transition Amid Financial Challenges

Outdoor retailer REI Co-op has announced a significant leadership change, with CEO Eric Artz set to step down in March. Mary Beth Laughton, a seasoned executive with experience at Nike, Athleta, and Sephora, will take the helm as the company’s new chief executive.

The transition comes at a crucial time for REI, which has faced declining sales and implemented multiple rounds of layoffs in recent years. Artz, who has been with the company for 12 years and served as CEO since 2019, led REI through challenging retail periods, including the COVID-19 pandemic.

Laughton brings a wealth of experience to her new role, having previously served on REI’s board of directors. Her background in retail and e-commerce is expected to be valuable as the company navigates its current financial difficulties.

REI reported revenue of $3.76 billion in 2023, marking a 2.4% decrease from the previous year. The company anticipates further revenue decline in 2024 and has reported net losses in both 2022 and 2023.

In response to these financial challenges, REI has undergone significant restructuring. In October 2023, the company laid off approximately 275 employees, followed by an additional 357 layoffs in January 2024. Most recently, REI shut down its experiences business, affecting over 400 employees.

The company attributes its struggles partly to industry-wide declines in outdoor specialty retail. Additionally, REI’s commitment to competitive hourly wages has been cited as a factor contributing to its financial challenges.

Despite these setbacks, REI remains optimistic about its future. The company has announced plans to open six new stores in 2025 and at least two more in 2026, signaling a continued focus on brick-and-mortar expansion.

As REI navigates this transition and attempts to reverse its financial fortunes, industry observers will be watching closely to see how Laughton’s leadership impacts the company’s trajectory in the competitive outdoor retail market.