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In 2024, REI, the well-known outdoor retailer, is planning to review its US PR business. The company has started a comprehensive review process and invited over a dozen agencies to participate. Sources suggest that REI aims to select an agency by mid-2024 with an estimated contract value of $10 to $14 million for handling national brand awareness and earned media work in the US.
Despite repeated requests, REI did not provide any statement regarding the review. However, it is clear that the decision was made following a challenging year for the company in 2023, during which they experienced a revenue decline of $311 million to $3.76 billion. This financial setback resulted in multiple rounds of layoffs affecting hundreds of employees. In a letter to employees in January, CEO Eric Artz mentioned expectations for continued difficulties in 2024.
REI was established in 1938 by a group of climbers and has grown to employ over 16,000 individuals and operate 181 locations across the US. The retail chain functions as a cooperative owned by its 23 million members, reflecting its commitment to promoting outdoor activities and community engagement. Despite their successes such as their Black Friday OptOutside campaign that received industry recognition such as SABREs and a Cannes Lions Grand Prix in 2016, REI is still facing challenges and looking for new ways to grow their business.
