REI CEO Mary Beth Laughton took the stage at NRF 2026 at Javits Center in New York City on Sunday, marking nearly one year since she took the helm of the outdoor retailer. In a conversation with Fast Company Executive Editor Amy Farley, Laughton shared more details about Peak 28, the three-year strategy unveiled in September, and her vision for the 87-year-old company.
Laughton discussed how REI plans to evolve and what elements of its core identity she’s working to retain, as well as the role of artificial intelligence in outdoor retail, the relaunch of the company’s travel business, and the lessons she learned from her time at Nike, Sephora and Athleta.
“One thing that I always look for when I’m contemplating a role is, do I think this company or this brand has a lot of growth potential? Do I think it has unique assets that are going to enable it to win? And when I think about REI — you mentioned our 25 million members — we have so many unique assets. Whether it’s those members who are so passionate about REI, or our green vest employees who are in our stores and are amazing experts about the outdoors or our mission — all of that is really unique. So that really drew me in.”
Laughton said she also wanted to make sure she could have an impact on the company, which has had some challenging recent years, with multiple rounds of layoffs, the closure of the Experiences travel business, store closures and a 6% revenue decline in 2024 to $3.53 billion.
“We’re definitely at an exciting place for the Co-op, with lots of growth potential ahead,” she said. “We’re also making sure we put in the retail fundamentals to enable scale. I really love that sweet spot.”
The Role of Technology and AI in Outdoor Retail
Laughton addressed the impact of artificial intelligence on the retail industry. She said that AI will touch every aspect of the business but argued that technology itself will not be the differentiator, as it will become table stakes for all retailers. Instead, she believes REI’s humanity will set it apart.
“It will be the human connection point,” Laughton said. “The thing [AI] can’t do … is really that lived experience in the outdoors. It hasn’t gone hiking. It hasn’t gone camping.”
Laughton said she sees an opportunity to leverage REI’s “green vests” — the store employees known for their outdoor expertise — in a digital world. The company has begun integrating product testimonials from employees into product pages and showcasing them in videos. Laughton noted that these additions are driving a lift in conversions.
Regarding “agentic commerce,” where AI agents make purchasing decisions on behalf of consumers, Laughton acknowledged the need to be present where customers are spending time, including on large language models. However, she also highlighted the risks.
“We’re thinking a lot about what is special that we want to keep just for our own platforms, and what can show up on one of those LLMs,” she said.
Developing Peak 28 and Evolving Culture
Laughton explained that the companywide listening tour she embarked on before developing Peak 28 developed some of the foundations of the strategy.
“I think one of the most interesting things was that people wanted us to preserve the culture and the mission and the values, and that makes a lot of sense on the cultural side,” Laughton said. “I also heard in the other camp that we need to evolve our culture.”
Traditions such as the annual Twinkie roast during the holidays and opting out of Black Friday are important to preserve, she said. But it is also important to stay focused on the future and long-term health of the company. Laughton also elaborated on the apology she made on behalf of REI after the company had endorsed Doug Burgum for Secretary of the Interior before she was CEO.
“I did have to go out and publicly retract our endorsement of him,” Laughton said. “I apologized on behalf of the Co-op. As much as people still didn’t like that we had made that decision and were upset with the Co-op, I think they appreciated the transparency. I think they appreciated the apology. And I think that’s a great lesson that companies are never going to be perfect, and sometimes just apologizing and showing that vulnerability is actually really helpful.”
REI similarly voiced its commitment to diversity and inclusion, Laughton said, as attacks on DEI programs gained traction and other retailers retreated.
“We’re really steadfast and just standing firm for our commitments to diversity and inclusion because that’s a core part of our mission. It’s helping everybody get access to the outdoors.”
Peak 28 was chosen to signal that the organization and its customers are climbing toward 2028 together, she said. Before establishing the pillars of the plan, Laughton and her team focused on positioning, choosing a vision for REI as “the most trusted retailer for people who love the outdoors.”
The plan rests on four pillars, and the first prioritizes culture. Laughton explained that without a “connected, focused, and trailblazing culture,” the rest of the strategy would fail. The second pillar focuses on product assortment, ensuring that when customers enter a store, they find items that feel authentic and relevant.
The third pillar addresses service and experience. Laughton emphasized the need to elevate interactions in a way that feels personalized and emotional, countering a retail landscape that is becoming increasingly transactional. The final pillar involves reinventing the membership program.
“It’s a combination of growth and innovation and where we want to head, but also making sure that we’re investing in retail foundation and fundamentals,” Laughton said. “As I’ve come into the role, I’m recognizing that the balance of those two is really, really critical.”
Relaunching Travel with Intrepid
Laughton elaborated on the company’s decision to relaunch its travel business last week with partner Intrepid Travel less than one year after shuttering its Experiences business because it wasn’t profitable.
“We realized … listening to our members is so key to who we are,” Laughton said. “So as we listen to our members, who are passionate about (travel), really understanding what they’re looking for and then finding a way to solve for that in a different business model.”
Laughton described Intrepid as a partner aligned with REI’s values. This partnership model allows REI to offer adventure travel without carrying the operational weight of the previous business unit. Laughton framed this as a way to provide new benefits to members through the reinvented membership program.
Lessons from Nike, Sephora, and Athleta
Laughton reflected on how her past roles inform her current leadership. From her time at Nike, she took away an “intense obsession” with the customer. She recalled how customer centricity was woven into every process, from product creation to marketing campaigns.
“To me, it’s success if we have to stop a meeting where we’re debating and we can’t decide something, and the way we get to a decision is actually saying, ‘Well, what would our customer or member say here?'” Laughton said.
At Sephora, Laughton learned the power of emotional connection in loyalty programs. She noted that Sephora’s program succeeds because it connects deeply with customers’ passion for the category. At Athleta, she observed the importance of aligning mission and values with business growth. She credited Athleta’s success during a competitive period to its clarity on what it stood for, specifically regarding women’s well-being and sustainability.
Looking Ahead
Laughton said she sees the dual mandate of serving the core outdoor enthusiast while welcoming newcomers who discovered the outdoors during the pandemic. She believes serving both groups will help REI grow and further its mission of getting more people outside.
“We’ve always served the core outdoor enthusiast, someone who is climbing the mountain, or doing the trek or the camping experience, and so we need to keep serving them, but then we’re also wanting to make sure we embrace anyone who loves the outdoors … I think the way we ultimately think about it is embracing that full set of consumers can really help not only grow REI, but help further our mission, because our mission is all about getting as many people outdoors as we can.”
Kate Robertson can be reached at kate@shop-eat-surf-outdoor.com.
