©Kamchatka via Canva.com
Have REI’s Campgrounds and Guided Adventures Cracked the Experiential Retail Code?
In the vast expanse of Arizona’s Grand Canyon area, adventure seekers and nature lovers will soon find a new haven courtesy of REI Co-op. The outdoor retailer and travel operator has announced plans to expand its camping opportunities with the recent acquisition of 20 acres of land south of Grand Canyon National Park. This land will soon be transformed into a Signature Camp, joining the ranks of REI’s other camping destinations near Bryce Canyon, Zion, and Great Smoky Mountains national parks.
Located just off Alta Villa Road in Valle, a stone’s throw away from the Grand Canyon National Park entrance, REI’s new Grand Canyon campground is strategically situated for both convenience and immersion in nature. Nestled amidst picturesque surroundings, this campground promises to offer a retreat from the hustle and bustle of everyday life.
Upon completion, the campground will feature 10 tents on platforms. REI has also planned a range of amenities to enhance the camping experience, including a communal fire pit, picnic areas, and three communal restrooms and showers, providing the convenience of modern facilities amidst the rugged beauty of the outdoors. There will also be a driveway with space for two vehicles and a storage shed for camping essentials.
The target date for opening this outdoor haven is set for spring 2025, with operations planned from April to October each year.
But what sets REI’s Signature Camps apart from traditional camping experiences? According to the retailer, these carefully curated destinations combine the thrill of outdoor exploration with the comfort of modern amenities like flushable toilets and hot showers.
Moreover, REI’s trips offer a range of experiences to suit every adventurer’s preferences. From two-night excursions at Bryce Canyon or Zion to comprehensive seven-night trips encompassing various iconic landmarks, there’s something for everyone. Plus, REI Co-op members enjoy competitive pricing and exclusive perks.
REI has been guiding adventure seekers since 1987, including hiking and camping excursions in national parks. With trips catering to various activity levels and interests, REI Adventures aims to make outdoor exploration accessible and enjoyable.
A Business Insider review of a sunrise hike in Pinnacles National Park, courtesy of REI Adventures, showcased an outdoor adventure with comfortable camping, expert guides, and delicious meals. The trip offered insights into park features, wildlife, and geology, making it an enjoyable experience for both novice and experienced outdoor enthusiasts. REI Adventures provides diverse excursions in the U.S. as well as the Canadian Rockies, with 145 adventure trips to choose from and prices ranging from $1,099 to $8,699.
Over the past few years, there have also been positive reviews on Reddit by those who have been on REI-guided trips, though many noted the high cost.
As for REI’s Grand Canyon adventures, the company already offers 14 different tours and trips at the national park, ranging from “a two-night weekend hike that includes a night at Phantom Ranch ($2,599) to a seven-night trip that starts at Grand Canyon and also includes Lake Powell, Monument Valley and Canyon de Chelly National Monument ($4,299).”
Discussion Questions
How does REI’s strategy of combining the thrill of outdoor exploration with modern amenities in its Signature Camps align with evolving consumer expectations for experiential retail?
What implications does this trend have for the future of the retail industry, particularly in the realm of outdoor recreation?
How can retailers like REI effectively leverage customer insights to curate unique and immersive experiences that foster brand loyalty and drive sustainable growth?
Poll
Loading …BrainTrust
Jenn McMillen
Chief Accelerant at Incendio & Forbes Contributing Writer
David Naumann
Marketing Strategy Lead - Retail, Travel & Distribution, Verizon
A very high proportion of REI customers love the outdoors and regularly use their vacations to undertake activities like hiking and camping. By offering these services itself, REI both makes money and cements its credentials as an outdoor and recreation specialist. There is also a social element with a lot of these trips fostering a sense of community among people who enjoy similar interests. The expansion in Arizona is interesting, as it builds on an already successful business in the state following REI’s acquisition of Arizona Outback Adventures back in 2019. We often hear about ‘experiential’ retail: this is it in action!
REI’s approach of melding outdoor excitement with contemporary conveniences reflects shifting consumer desires for immersive retail experiences. Signature Camps offer both adventure and comfort, meeting the demand for memorable outings that blend nature’s allure with modern amenities, appealing to today’s experiential retail preferences.
Retail may shift towards experiential offerings, integrating nature with comfort. Outdoor recreation retailers may focus on enhancing customer experiences to stay relevant. REI can gather feedback through surveys, social media, and purchase data to tailor experiences, fostering loyalty and sustainable growth.
You had me at “flushable toilets and hot showers.” What a brilliant positioning move. REI should consider additional camps in the Black Hills of South Dakota, at Niagara Falls, and other iconic outdoor spots.
As someone who left the pit toilets behind long ago, this type of experience certainly seems more appealing! I’m sure I’m not alone in that regard, so this approach will likely appeal to many who want the best of both worlds – modern conveniences and outdoor experiences.
I can only applaud what REI is doing. It looks like they are tapping into every angle of experiential retail. But I would point out that REI, and other outdoor retailers, have a huge advantage in that they can offer the experience as a product for sale, not just as a halo or umbrella. They offer authentic experiences that are amazing products in and of themselves, as well as the ability to outfit the customer for that experience. And for the merely aspirational customer, the availability of the experiences provides a genuine umbrella and halo effect for all the day-to-day products they sell. The perfect combo. Experience as product and experience as value-adding magnet and authenticator.
But that doesn’t crack the code for most mall retailers. Yes, the mall retailer must offer a great experience. Product, presentation, service, tech tools that streamline the process and remove friction. But they also have to rely on the mall to provide a range of experiences. The food court, movie theaters, gyms, Easter Bunny, Santa Clause. It gets a lot more complicated when retailers don’t have some of the advantages that REI enjoys.
REI’s Signature Camps are a smart strategy to offer premium adventure experiences to its members. However, the price will only appeal to the most affluent REI customers. For example, a two-night weekend hike that includes a night at Phantom Ranch ($2,599) is probably a bit too pricy for most REI customers.
Talk about vertical integration! Good for REI on acquiring land to make the experiential side a reality, because now they can control the experience from end to end (literally), ensuring the adventure options are up to REI’s standards. Plus, for those perhaps skeptical of camping as a vacation option, the REI name stands for top-notch quality, so this extension of the brand is a signal that the experiences will be top notch as well. The cost, though? A little toasty, but so are REI prices on the daily.
This is in perfect alignment with what a customer would expect from REI. Now, they have to determine if it’s a good revenue model. The cost to promote and deliver on the experience needs to make financial sense. That doesn’t mean it needs to make money, but it needs to create a benefit for both REI and its customers/members.
I’m an REI fan (maybe fanatic) but sorry to say I’ve never joined an REI guided trip. I’ve enjoyed numerous, self-guided, backcountry, backpacking trips with no amenities and have visited several National and State Parks with my family. Most of my “lightweight” gear is REI Co-Op branded and almost all of my gear was purchased at REI.
I’d like to know how many of “us” have participated in REI’s or anyone’s “experiential retail.” Outside of adventurers where guides are mandatory like Everest, I suspect many of “us” haven’t and that’s the point. Many of “us” invest a lot in our gear and our gear-turnover isn’t high. REI needs to make money and do it in a way that’s consistent with its mission and values. I think this is a great extension of their brand and engages a target market that isn’t “us” but loves the “trowel-less” outdoors.
REI can do this because it’s a core competency. You’d think “hospitality” wouldn’t be but I’ve always found their staff to be passionate about the outdoors and very “hospitable.” It’s no surprise that they’ve been successful at “experiential retail.” Retailers looking to expand their brands would be wise to understand this. One of my only criticisms might be the price points but the trips are all inclusive and in line with their target demographic. My other is that as we commercialize the outdoors it will become more difficult for us to preserve it. For example, the amounts of trash I’ve seen near trailheads has increased considerably over the last several years, especially since COVID. However, I believe everyone should #OptOutside so we’ll have to figure out how to dance on this razor’s edge.
This makes sense. Trek Bicycles run bike tours throughout the world (on Trek bikes of course) and that seems to be successful. How successful who knows. But for the want to be camper as an example, REI offering different experiential tours is a logical addition to the REI brand.
Assuming success here why wouldn’t say, North Face offer guided climbing tours or classes? Create a new market set for their clothing and equipment.
REI’s strategy is a solid one and has worked for several other retailers. Orvis has in person shooting schools and fishing lessons. These types of Immersive and often lesson filled experience build loyalty, confidence in purchases selection, and life long customers. Several retailers have added indoor shooting ranges for bows, and most people who have purchased a golf club in the last few years have swung the clubs in a simulator. All of these Immersive approaches will continue to drive purchase confidence and brand loyalty.
What people don’t see coming is how “experiences” or getting out in the world is a key driver for the improvement in ones individual health (more so than pill popping). The pivot is done. Kudos for REI for curing what they sell, the way Land Rover and JEEP have been allowing the future consumer to envision life behind the wheel of their vehicles. Subaru’s display at auto shows is an experiential playground with dogs no less! Human nature hasn’t changed in thousands of years. We still covet the “experience economy” above all else! Welcome to the #futureofretail.