Eric Artz, president and CEO of REI, is retiring, with Mary Beth Laughton stepping in to steer the struggling outdoor retailer. Most recently, Laughton headed Nike’s stores, and she has also been president and CEO of Athleta, owned by the Gap, as well as holding key roles at Sephora.
Laughton, who had previously served on REI’s board of directors, steps in at a rough moment for REI. The co-op recently announced plans to exit the experience business, which includes classes and travel excursions, a step that led to more than 200 layoffs.
Artz, who joined REI in 2013 and assumed the CEO role in 2019, is credited with steadying the organization through the tumult of the pandemic. But the company, a co-op with more than 24 million members, has lost money two years running. And last year’s sales fell 2.4% to $3.76 billion as outdoor gear sales fell and competition increased.
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While REI will report full-year financial results in late April,Fortune reports that Artz said in early January that the retailer will come close to break-even operating income for 2024, excluding the dividend it pays members.
Observers hope that Laughton can keep that progress going, solving some of the company’s problems while protecting the brand’s famous “outdoor nerd” reputation.
“No other company balances purpose and performance quite like REI, and we must ensure it thrives for generations to come,” said Laughton in the announcement. “That is a big responsibility – one I embrace with utmost respect for our millions of members and the thousands of employees whose passion for life outside and deep expertise set the co-op apart.”
REI isn’t the only retailer struggling. Coresight Research, a leading retail consultancy, recently forecast 15,000 U.S. store closures in the year ahead and said it had already tracked 2,000 just a few weeks into the new year. Those include such retail chains as Party City, Big Lots, Kohl’s, and Macy’s.
Coresight anticipates just 5,800 store openings. In 2024, Coresight tracked 7,325 closures, the highest number since 2020, when almost 10,000 closures were tracked. It also reported 5,970 openings, the most since 2012.
"Inflation and a growing preference among consumers to shop online to find the cheapest deals took a toll on brick-and-mortar retailers in 2024,” said Deborah Weinswig, Coresight’s CEO. “Last year, we saw the highest number of closures since the pandemic.”
The new report notes that major U.S. retailers have announced 29.6% fewer openings and 334.3% more closures than the year-ago period.