- REI introduced Wednesday the corporate’s president and CEO, Eric Artz, will step down in March.
- Mary Beth Laughton, a former chief at Nike, Athleta, and Sephora, will take over as CEO.
- REI reported a decline in gross sales in 2023 and has not too long ago had a number of rounds of layoffs.
REI Co-op, the outside retailer headquartered close to Seattle, introduced Wednesday that its President and CEO, Eric Artz, is stepping down in March and might be changed by Mary Beth Laughton, a former govt at Nike and Athleta.
“Eric has led and stabilized REI via a few of the most difficult years the retail sector and our co-op ever confronted,” Chris Carr, chair of the REI board of administrators, mentioned in an announcement. “REI is in a powerful place in the present day as a result of he all the time stored our objective, values, and other people as his north star.”
“Mary Beth has the perfect expertise to construct on this basis and to steer REI ahead into our subsequent chapter,” Carr added. “The world wants a powerful REI, and we’re assured Mary Beth will hit the bottom working.”
Artz has served as president and CEO of REI since 2019 and has been on the firm for 12 years. Previous to becoming a member of REI, he was the CFO of City Outfitters.
Laughton beforehand labored at Nike as the pinnacle of Nike International Direct to Client. She additionally served because the president and CEO of Athleta from 2019 to 2023 and led Sephora’s US shops and digital operations. She beforehand served as an REI board member from 2017 to 2019.
“No different firm balances objective and efficiency fairly like REI, and we should guarantee it thrives for generations to come back,” Laughton mentioned in an announcement.
Laughton joins REI as the corporate faces monetary struggles and has undergone a number of rounds of layoffs previously couple of years.
REI reported $3.76 billion in income in 2023, marking a 2.4% lower from 2022. Its 2024 financials haven’t but been reported, however Artz beforehand mentioned the corporate anticipated a decline in income in comparison with 2023. The corporate additionally reported internet losses in each 2022 and 2023.
In October 2023, REI laid off round 275 staff, whereas one other 357 had been laid off in January 2024. This month REI introduced it was shutting down its experiences enterprise and shedding greater than 400 staff.
The corporate has attributed its challenges to industry-wide declines in outside specialty retail in addition to its dedication to paying its hourly staff effectively, amongst different components.
Nonetheless, REI continues to develop, with six retailer openings deliberate for 2025 and at the very least two in 2026.
Are you a present or former REI worker or buyer with insights to share? Contact this reporter at kvlamis@businessinsider.com or by way of the encrypted messaging app Sign at kelseyv.21.
