Outdoor Insight

N E W S / A N A L Y S I S OUTDOOR EYE I n early April, REI Co-op published its annual stewardship report, announc- ing record 2018 financial results and what it described as "significant progress toward making a positive impact on the outdoor community." In 2018, REI made a record $2.78 billion, up 6 percent, and added more than a million new members, bringing the co-op's total member- ship to more than 18 million. In an annual letter to members, REI president and CEO Eric Artz said that while the numbers represent strong performance, REI and the broader outdoor community must do more. In 2019, the co-op intends to continue to make choices that may seem counter intuitive – like shutting down on Black Friday and giving back most of its profits to the outdoor community. Artz says REI is also working to scale sustain- ability efforts in the outdoor industry, and helping more people get outside by expanding into rentals and used gear. Says Artz, "Most of the U.S. population is disconnected from nature, spending more time inside than outdoors. We need to reverse that trend. Spending time outside isn't only good for people's health. It connects people to something bigger – a desire to fight for the future of life outside." REI plans to significantly expand its gear rental program and invest in used gear and gear trade-in options – in-store and online. New rental options will include snowshoes, skis, snowboards, fully equipped camping and backpacking kits and more in 115 stores across the country. Re-use and rental options, something many outdoor specialty retailers have built their businesses around for decades, is increasingly popular across different markets with the mil- lennial consumer audience, 36 percent of whom say they would rather rent than own a product. "We're determined to make it as easy as possible for people to make more sustainable choices," says Ben Steele, REI's chief customer officer. "In 2017 we made it possible to search for product sustainability attributes online, and in 2018 launched our Product Sustainability Standards to ensure that every product we sell meets a minimum set of expectations. In 2019, we see the expanded rental and used gear program as keeping us moving toward a sustainable and accessible outdoor future by offering new models of access to great outdoor gear and apparel." On the product side, both cycling and pad- dling are getting expanded offerings in REI stores in 2019. REI is increasing its paddling field programs and tours, including classes and exploration- focused tours across the nation. In addition to the current boathouses in Chicago; Atlanta; and Lincoln, Rhode Island; REI is opening two boathouses in Bellevue, Washington and one in Denver. REI boathouses offer guided water-based outings and classes, plus gear rentals, including stand-up paddleboards and kayaks. In the cycling category, REI is adding Bontrager premium accessories and apparel, and has expanded on its long-standing relationship with Cannondale to make the brand available at all REI locations. e co-op also is adding full-suspension mountain bikes to its in-house Co-op Cycles line and additional bicycle ser- vices and experiences for customers through an expanded bike rental program and pilot trade-in program. l Columbia Sportswear sees footwear as a growth opportunity. Forecasting 6.5-8.5 percent overall sales growth in 2019, Columbia reports that it anticipates its fastest U.S. growth will be in the footwear segment. The company is preparing a marketing blitz in the cities of Denver and New York between Q3 and Q4 to spark sales and brand awareness. Wolverine Worldwide-owned running brand Saucony has named Shawn M. Hoy, a Nike veteran, as VP of global product. Hoy will report to Anne Cavassa, president of Saucony. Hoy, a former McKinsey executive, will be charged with inspiring and guiding Saucony's global brand footwear and apparel strategies with responsibility for design, development and product innovation. At Nike, his many strategic planning and senior product positions, included a stint as the brand's soccer footwear product director. Bass Pro Shops has named Jamie Sohosky, a 13-year veteran at Walmart in various roles and a former category marketing manager for Campbell Soup Co., as chief marketing officer for the Bass Pro and Cabela's parent. Smith announced that Mark Phares has re-joined the Portland, OR company as VP of global sales after four years serving as OluKai's director of sales for the Western U.S. Phares previously spent 17 years at Smith in various roles. Cotopaxi has named industry veteran Evie Moe as its new VP of Design. Moe comes to Cotopaxi with 17 years of experience in the apparel industry, most recently at New Balance, where she was NB's apparel design director, leading the global design team for men's and women's performance and lifestyle categories. A Ruff Mudder for dogs? It's no joke. What started as an April Fool's Day prank has become the newest official event in the Tough Mudder lineup. Chewy, an online retailer of pet products, is sponsoring the Ruff Mudder obstacle challenge series (a Tough Mudder for Dogs), which was set to debut on May 18 in Philadelphia. # T H E B U Z Z Top Takeaways from REI's Record Year outdoorinsightmag.com 4 • Outdoor Insight • May 2019

• Cover