REI gets new president and CEO, Eric Artz, retires

After 6 years at the helm of REI, the cooperative’s president and CEO Eric Artz will retire at the end of March. His successor, Mary Beth Laughton, will assume the role on February 3 and assume full CEO responsibilities by March 31.

Laughton is a former REI board director who most recently served as a board member for Instacart and led Nike Global Direct for consumer sales. She was also CEO of Athleta and held leadership roles at Impossible Foods and Sephora.

“Mary Beth has the ideal experience to build on this foundation and lead REI into our next chapter,” REI Chairman Chris Carr said in a statement. “The world needs a strong REI, and we’re confident Mary Beth will hit the ground running.”

REI confirmed that Artz’s departure and Laughton’s appointment follow a “planned succession process.”

Eric Artz: REI Legacy

Carr also praised Artz for his leadership in what he called “some of the most challenging years the retail sector and our co-op have ever faced.”

To be sure, Artz faced a number of unprecedented problems during his tenure. He stepped into the role of president and CEO amid a whirlwind of speculation following an internal REI investigation that led to the unexpected resignation of Artz’s predecessor, Jerry Stritzke, in 2019.

Less than a year later, Artz and the world faced the COVID-19 pandemic affecting all sectors, upending retail and supply chains. Still, Artz helped the co-op achieve climate neutral status in 2020 and led the brand through significant social and structural changes that reshaped the brand.

Since 2020, REI has redoubled its efforts to improve representation and accessibility in its products, partnering with brands like Outdoor Afro on capsule apparel launches and retooling its flagship Magma sleeping bags to offer more inclusive “gender-neutral” sizing options. And the co-op helped launch the Embark program to support BIPOC-led startups through a partnership with Founded Outdoors.

But for REI, the last 6 years were not without problems. In 2022, the co-op was thrust into the national spotlight over worker health, safety and cultural issues when its store in SoHo, NY, pushed to become unionized. That effort was successful despite the cooperative’s stance against it. In the following years, the number of unionized shops grew to 10, with one 11. shop is awaiting voting.

Most recently, Artz made the “tough decision” to end REI’s Experiences adventure travel program after 40 years. Thus, the cooperative eliminated jobs for 180 employees and 248 part-time supervisors.

Looking ahead

Despite recent setbacks, REI said it is on track to meet its 2024 goals. That will break even on operating profit and nearly break even on free cash flow, according to REI executives.

“REI is in a strong position today because (Artz) always held our purpose, values ​​and people as its north star,” Carr said.

When she takes over as president on Feb. 3, Laughton will begin her tenure with REI by hitting the road to visit stores and distribution centers. She plans to meet in person with employees, partners and community members, according to the co-op.

In a letter to employees, Artz expressed gratitude for the support of REI’s staff while reaffirming the co-op’s mission.

“Our shared belief is that a life outdoors is a life well lived; that time outside is where we are our best selves and where we are most connected to each other,” Arts wrote.

“Being outside means something different to everyone, and our job is not to tell people what it looks like. It’s to show each other and welcome others, always to make time outside more accessible to more people in more ways. It’s worth fighting for and why I believe the world needs a strong REI. THANK YOU for believing in this power and sharing your passion with millions of people every day.”