REI Co-op announces the closure of its Experiences business, including outdoor adventures, day tours, and classes, citing financial losses and the need to focus on core business areas.
REI Co-op has made the difficult decision to discontinue its Experiences business, effective this week. This includes the closure of all adventure travel, day tours, and classes offered nationwide. In a message to employees, REI Co-op president and CEO Eric Artz explained that the decision was made after a thorough review and careful consideration.
He stated that a thriving co-op requires a sustainable economic model, and while the cooperative has made significant improvements in 2024, the Experiences business continues to be unprofitable, losing millions of dollars annually. Artz emphasized that the decision was not a reflection on the hard work and dedication of the Experiences team, but rather a necessary step to ensure the long-term health and sustainability of the co-op. He noted that the Experiences business served less than 0.4% of REI's total customer base in 2024, and the costs associated with running the business, including marketing and technology, significantly outweighed the revenue generated.Artz expressed gratitude to the Experiences team for their contributions over the past 40 years, highlighting their dedication to educating and creating wonderful experiences for nearly one million people. He acknowledged the significant impact this decision will have on the 180 full-time and 248 part-time employees in the Experiences division. To mitigate the impact, REI Co-op has committed to providing support to affected employees, including continued salaries through March 9, 2025, active benefits coverage until the end of March, and separation benefits such as severance, healthcare coverage continuation via COBRA, and outplacement services. This decision marks a significant change for REI Co-op, which has long been recognized for its commitment to outdoor education and recreation. The closure of the Experiences business will undoubtedly be felt by many members and enthusiasts who have benefited from REI's programs over the years. However, the co-op's leadership asserts that this difficult decision is necessary to ensure its long-term viability and allow it to focus on core business areas that reach a larger customer base and contribute more positively to its mission
REI Experiences Outdoor Programming Closure Business Decision Financial Losses
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