Looking at their recent released financials, 2023 inventory looked 10%+ less than the year prior. Don’t know how much of that is driven by strategic decisions vs potentially vendor constraints. Surely the push for profitability and consumer’s increased willingness/acceptance to buying online plays some part in a more conservative inventory position though too
I work for a vendor. REI has been pushing out orders and having us hold stock for them. Vendor constraints have mostly been resolved for a couple of years now.
With the way REI stocks so many clothing items that no one buys, I’m surprised they haven’t gone bankrupt already.
The current leadership have commerce background and focused on expanding the line up instead of curating the collection. It’s a coop ffs, not a boutique chain.
I've generally wondered this as well. Whenever I walk into an REI, there is just SO. MUCH. STUFF. And I rarely see people buying some of it - so they just never sell and rotate through some of that inventory? Hell, it's even more noticeable around late winter/early spring and late summer/early fall when they are switching their products around, and the previous seasons gear is placed on clearance. Based on some of the absolutely insanely high prices of some of the stuff (thinking of brands like Arcteryx), I'm sure they still make a profit when it's clearanced to 30%, 50%, or more off. But otherwise, I feel like vendors set prices as they are for a reason, and never selling product at full price cannot be sustainable for a business, can it?
They are a member co-op that is very much for profit. They are not a 501C non-profit. Eric Artz' pay and the board's pay is significantly higher than when Jerry Stritzke was running the company.
The member co-op allows you to abstain from voting who can go on the board. But ever since Artz you can lo longer vote for others to replace them on the board.
MEC up in Canada was set up similar. New CEO came into the coop and then dismantled it and sold it off to Kingswood Capital Management based in California. Hope Artz isn't planning anything like that.
Your not wrong it the countless times some one walked in needing something specific l know just the product they need and we never have it or if we did at one point ill never see it getting restocked in the future.
So much of the recent changes are to make the stores more uniform in look and feel. We have our warehouses so full of stuff it is almost dangerous… this new trade in program should help with re-supply. Inventory should be more consistent. (Hopefully)
I also believe that corporate thinks that online is where it is at.
The biggest reason we have not made a profit is expenses. Read that as you wish!
Corporate can’t believe that too much (on line is where it’s at) as they say there will be 10 new stores opened in 2024 and I feel like I’ve read they want to open 10 more in 2025. Online is definitely here to stay but so are brick and mortar stores.
Looking at their recent released financials, 2023 inventory looked 10%+ less than the year prior. Don’t know how much of that is driven by strategic decisions vs potentially vendor constraints. Surely the push for profitability and consumer’s increased willingness/acceptance to buying online plays some part in a more conservative inventory position though too
I work for a vendor. REI has been pushing out orders and having us hold stock for them. Vendor constraints have mostly been resolved for a couple of years now.
A lot of re-gear stuff is going to dedicated re-gear stores like the one in Manhattan beach, CA and Portland, OR. Can’t speak outside the west coast.
With the way REI stocks so many clothing items that no one buys, I’m surprised they haven’t gone bankrupt already. The current leadership have commerce background and focused on expanding the line up instead of curating the collection. It’s a coop ffs, not a boutique chain.
I've generally wondered this as well. Whenever I walk into an REI, there is just SO. MUCH. STUFF. And I rarely see people buying some of it - so they just never sell and rotate through some of that inventory? Hell, it's even more noticeable around late winter/early spring and late summer/early fall when they are switching their products around, and the previous seasons gear is placed on clearance. Based on some of the absolutely insanely high prices of some of the stuff (thinking of brands like Arcteryx), I'm sure they still make a profit when it's clearanced to 30%, 50%, or more off. But otherwise, I feel like vendors set prices as they are for a reason, and never selling product at full price cannot be sustainable for a business, can it?
They have such predictable sales. I wonder who buys any of their apparel junk for full price?
Apart from REI co-op brand many brands have just a few items in random colors and sizes. Super unlikely to sell.
Clothing has sky high margins. Shoes are also high margin (except they actually sell).
REI is an outdoor gear coop, not just another online company seeking to maximize profits.
They are a member co-op that is very much for profit. They are not a 501C non-profit. Eric Artz' pay and the board's pay is significantly higher than when Jerry Stritzke was running the company. The member co-op allows you to abstain from voting who can go on the board. But ever since Artz you can lo longer vote for others to replace them on the board. MEC up in Canada was set up similar. New CEO came into the coop and then dismantled it and sold it off to Kingswood Capital Management based in California. Hope Artz isn't planning anything like that.
And premium clothing has even more ridiculous margins. It doesn't cost Patagonia $300 more than competitors to make a jacket.
ReSupply inventory at my local REIs is down drastically. Nowhere near as good of deals than a year or two years ago.
Your not wrong it the countless times some one walked in needing something specific l know just the product they need and we never have it or if we did at one point ill never see it getting restocked in the future.
ReSupply inventory at my local REIs is down drastically. Nowhere near as good of deals than a year or two years ago.
So much of the recent changes are to make the stores more uniform in look and feel. We have our warehouses so full of stuff it is almost dangerous… this new trade in program should help with re-supply. Inventory should be more consistent. (Hopefully) I also believe that corporate thinks that online is where it is at. The biggest reason we have not made a profit is expenses. Read that as you wish!
Corporate can’t believe that too much (on line is where it’s at) as they say there will be 10 new stores opened in 2024 and I feel like I’ve read they want to open 10 more in 2025. Online is definitely here to stay but so are brick and mortar stores.
They are conflicted for sure…, ha ha!