Who Owns REI Co-op? The Member-Owned Model Explained

REI is owned by its members, not by outside shareholders. Recreational Equipment Inc., the outdoor gear retailer known as REI Co-op, is a consumer cooperative: anyone who buys a one-time $30 lifetime membership becomes a part-owner with voting rights and an annual share of the profits. That structure, in place since 1938, is what separates REI from nearly every other national retailer.

How REI's member-owned co-op model works

Lloyd and Mary Anderson founded REI in Seattle in 1938 to help fellow climbers buy quality ice axes and gear at a fair price. They organized it as a cooperative, a business owned collectively by the customers it serves. That founding idea still defines the company. REI now counts more than 24 million members, making it the largest consumer co-op in the United States.

The $30 lifetime membership buys a single share in the co-op and comes with three concrete benefits. Members earn an annual Co-op Member Reward, historically around 10 percent of what they spend on eligible full-price purchases. They get member-only pricing and sales. And they can vote each year to elect REI's board of directors, the closest thing a retailer has to shareholder democracy. There are no annual dues and no per-year renewal.

Because members are the owners, REI reinvests much of its surplus rather than paying it out to Wall Street. The co-op reports its results partly in terms of what it gives back: dividends to members, funding for nonprofits and outdoor access, and free classes and events. That community focus, more than any single product line, is what has kept REI relevant against Amazon and other online sellers.

What is a co-op, and why it matters

A co-op is a business owned and controlled by the people who use it, whether they are customers, workers, or producers. Profits flow back to those members instead of to outside investors. The model gives shoppers a stake in the businesses they support and a vote in how those businesses are run. According to Forbes, 76 percent of consumers say they are more likely to support a business because it is a co-op.

The trade-offs are real. Co-ops are less understood than corporations, get little coverage in business-school curricula, and can struggle to raise capital because they cannot sell equity to investors the way a public company can. Regulations and the shortage of experienced co-op operators make new ones hard to launch. Those constraints are a large part of why co-ops remain a small share of U.S. retail even though the structure is decades old.

Is REI still a co-op? Leadership, layoffs, and union pressure

REI is still a member-owned co-op, but its recent record has drawn criticism from workers and some members who say it is drifting from its roots. The company cut 357 jobs in January 2024 and, in January 2025, shut down its REI Experiences guided-trips business, ending roughly 428 more positions. Members and labor advocates have questioned executive pay and how much say members really have in major decisions.

Leadership also turned over. Longtime CEO Eric Artz stepped down and former Athleta and Nike executive Mary Beth Laughton took over as president and CEO on March 31, 2025, tasked with turning the co-op around. At the same time, workers at more than 11 REI stores have voted to unionize since 2022, represented mainly by the UFCW and RWDSU. Union leaders argue the layoffs and store decisions show REI is acting more like a conventional retailer than a cooperative. How REI answers that charge will shape whether its co-op identity stays central or becomes branding.

Other well-known co-ops beyond REI

REI is the most visible U.S. retail co-op, but it is far from alone. Ocean Spray and Sunkist are grower cooperatives owned by farmers. Credit unions are financial co-ops owned by their depositors. Ace Hardware is owned by its independent store operators. In 2018, the 100 largest U.S. co-ops generated more than $222 billion in revenue, a reminder that shared ownership scales well beyond a single outdoor retailer, from employee-owned firms to housing co-ops.

REI Co-op: key takeaways

• REI is a consumer cooperative owned by its members, not by outside shareholders.
• A one-time $30 lifetime membership buys a share, member pricing, voting rights, and an annual Co-op Member Reward.
• Founded in 1938 by Lloyd and Mary Anderson, REI now has more than 24 million members.
• Recent layoffs, the 2025 shutdown of REI Experiences, and union drives have raised questions about how closely the company still follows its co-op principles.