Outdoor apparel chain REI Co-op has announced it will close its entire Experiences division, which offers low-cost, introductory hiking and activity courses, and lay off more than 400 staff members.
Approximately 180 full-time and 248 part-time employees will lose their jobs as REI focuses on its core retail business, the company said.
“We have held out as long as we can, but the fact remains that experiential business is an unprofitable business for the co-op and we need to change course.” Eric Ertz, CEO of REI, said in a statement..
“Experiences” offers entry-level, affordable information on camping, hiking, mountaineering, biking, snow sports, and water sports in hopes that customers will enjoy the activities and return to the REI store to purchase the gear they need. We have provided classes.
However, this division had a negative impact on REI's business. According to the CEO, the company will have served just 40,000 customers in 2024, less than 0.4% of all co-op customers. And the running costs were significantly higher than the installation costs, Aerts added.
Even at its peak in 2019, the best year in the sector's history, Experience wasn't profitable, Artz said.
Full-time employees affected by the closure will receive regular pay until March 9 and continue receiving benefits through the end of March. They will be eligible for severance pay.
Part-time employees will continue to receive benefits and severance pay until the end of January.
Artz stressed that the Experience's closure was a business decision and not a reflection on the work of the affected staff.
“You did what was asked of you, worked extremely hard, and over the years you provided great education and created great experiences for nearly a million people,” Ertz said in a statement. “I want you to know that you have done nothing wrong with the choices I share today.”
Customers who have booked an 'Experience' class or trip will receive a full refund. The company also said it plans to scale back contracts with travel partners it worked with on “experience” packages.
The CEO said REI remains committed to outdoor education and plans to fund a small team to “innovate and experiment in this space in 2025.”
REI has more than 190 stores in 43 states and Washington, DC, including six in New York. According to the company's website.
