The outdoor retailer REI announced today that it was exiting its “Experiences” business, ending all adventure travel trips, day tours, and classes. As a result, hundreds of full-time employees and part-time guides will have their jobs eliminated, effective this week.
The co-op said in a statement it lost millions of dollars a year to fund Experiences. Even at its peak, the brand said, the program did not generate a profit.
“We have gone through many iterations and explored multiple options to keep this business up and running and to preserve jobs. We’ve held out as long as possible, but the fact remains that Experiences is an unprofitable business for the co-op, and we must adjust course,” REI’s president and CEO Eric Artz said in a press release, announcing the end of REI Experiences.
Customers who are currently booked on trips or day programs with REI will receive a full refund. The brand also said it would work to address “any associated non-refundable expenses as appropriate.”
The move comes less than a year after REI expanded its Experiences offerings with the help of Outdoor Afro Inc. — a push that added trips “curated to infuse Black American history and culture (past and present) and feature local Black-owned businesses” — in an effort to expand participation and accessibility.
The co-op said it plans to refocus its resources on its core business of specialty outdoor retail.
“I know that this is difficult news,” Artz said. “The next few weeks will continue to be tough as we unwind an iconic part of our business and say goodbye to colleagues.”
40+ Years & Millions of Adventures: REI Experiences Closes Its Doors
The Experiences program has been part of REI’s business model for over 40 years, according to the brand. In that time, it served its customers with millions of adventures, from single-day hiking trips to multiday river float trips, adventure travel, and more. Customers could book an experience of their choice directly on the REI website.
In 2024, the program reached 40,000 people, though REI noted that number represents barely 0.4% of its customer base.
“When we look at the all-up costs of running this business, including costs like marketing and technology, we are losing millions of dollars every year and subsidizing Experiences,” Artz wrote. “Every path to profitability we explored would have required us to invest more time, effort, and focus away from parts of the business that reach significantly more customers, drive more positive financial outcomes, and have greater impact on our mission to get people outside.”
The Experiences program had 180 full-time employees and 248 part-time guides working under its umbrella around the country. REI said all full-time employees who lost their jobs will continue to be paid through March 9, 2025. They’ll also remain active on benefits through the end of March and will be eligible for separation benefits as well.
Shared employees who split their time working in stores and with the Experiences program will have a conversation with their managers about other potential positions they might be a fit for. Part-time employees will retain their benefits through January 2025 and are eligible for a severance payment. All affected REI employees will receive a Summit payout for 2024 and will be eligible for other roles in the company, according to REI.
Refocusing on Retail Roots
The Experiences business was an experiment that REI managed to pull off for decades. It helped contribute to REI’s multiyear commitment to get 3 million people outside annually. But with this announcement, the experiment has concluded.
“Our roots are in the gear and apparel we sell and the outdoor moments they enable,” Artz wrote. “This has been the core of our business for 86 years — and I believe when we stay focused on what we do best, we can and will succeed.”
REI said it still believes it has a role to play in outdoor education and expertise. However, Artz said, it needs to “reexamine and rework how we deliver classes and education to ensure they’re relevant to our customers, aligned to our mission, and financially viable.”
Going forward, REI plans to focus on growing its priority activities like camping and backpacking, running, and hiking. It also wants to improve sales, profitability, and liquidity by investing its resources in better tools to manage its inventory. Finally, it wants to enhance its online and in-store experience for customers with greater personalization, visual merchandising, and other investments.
“As a cooperative, we are organized to drive a healthy, profitable business that allows us to serve our members, our employees, and society,” Artz said. “We’ll share more about our long-term plan to do so next month.”
