Fostering a sense of growth, community and innovation at REI

Mary Beth Laughton certainly had the credentials when she stepped in as president and CEO of REI Co-op last year. With stints at Nike, Sephora and Athleta, she has driven growth and led physical and digital retail.

But taking the helm of a 25-million-member co-op was a tall order. At NRF 2026: Retail’s Big Show, Laughton and Amy Farley, executive editor of Fast Company, discussed the delicate dance of driving change without forgoing tradition.

The company’s strategic plan, “Peak 28: Ascending Together,” aims to bring financial viability while adhering to four pillars — all of which revolve around customers, which in the case of the co-op, are also its owners.

“If someone comes into our stores, they’ve got to feel like we have a great set of products for them, particularly in our core categories,” Laughton said. “We also have one [pillar] around elevated service and experience. So, in a world that’s becoming kind of more digital, more transactional, how do we make sure we really elevate our service and our experiences in a personalized really emotional way?”

One pillar revolves around reinventing the membership program, and another is maintaining culture. “The reason for that is, we realized we could have this great plan on paper, the strategies being really solid, but if we didn’t get the cultural evolution at the same time, the plan probably isn’t going to come to fruition. It’s around a connected, focused and trailblazing culture. And we’ve really been focused a lot on making sure we talk to that just as much as we do the strategic pillars.”

Member involvement is and will continue to be the core of REI, part of its structure as a co-op and partly in homage to the fervor of its customers. “That’s one of the things I love about the co-op most, is just how much we really try to put the members at the center of what we do, things like creating our co-op brand product,” Laughton said.

“We’ll interview hundreds, thousands of people to get their input as we create that product. And I think that’s really unique. It does bring some unique challenges too.”

When she joined REI, Laughton took three months to go out on a listening tour — after emailing all 15,000 employees seeking ideas. She visited distributor centers and vendor partners. “It really was about listening and making sure I could take in and understand what made the co-op special, but also where there was opportunity and risk.”

What she heard was a desire to preserve the mission and culture while evolving. Things like the annual Twinkie roast celebration, which kicks off the winter season, are “really important that we keep alive.” On the other end, though, is a need to focus on “the things that matter to the co-op” and have a clear plan.

That plan relies heavily on REI’s employees, the Green Vests, who Laughton believes will keep the retailer relevant while technology transforms it. “If anyone’s been in our stores, you know they’re not just employees, they are trusted guides, they are passionate experts about the outdoors. And so we’re thinking a lot about how we can leverage them really at any touchpoint.”

Already, product testimonials from Green Vests are included in product pages and videos. “We’re seeing conversion lift from it,” she said. “It’s great because people really love the Green Vests. We integrated them into our holiday campaign: ‘What would a Green Vest recommend you buy for a gift?’ And it’s great because it brings that real emotional connection to people.”

While Laughton believes AI will “touch every aspect of our retail journey and our retail business,” she believes the human connection will be the differentiator.

“AI can be really fast. It can be really effective. It’s super smart, but the thing it can’t do is really that lived experience in the outdoors. It hasn’t gone hiking. It hasn’t gone camping. Our Green Vests can have had that lived experience. They also just really care.”