
Written by a model from the transcript; not yet reviewed.
In this episode, Mary Beth Lawton, the president and CEO of outdoor retailer REI, discusses the challenges of steering the 88-year-old consumer co-op through a turbulent retail landscape, post-pandemic losses, and internal union pressures. She explains how REI's unique structure without shareholders shapes her long-term strategy, the importance of balancing commercial profitability with core values like environmental advocacy, and why she chose to publicly rescind support for a cabinet secretary whose policies conflicted with the co-op's mission. Lawton also draws on her executive experience at Nike, Athleta, and Sephora to explain how she is approaching digital transformation and the integration of AI.
The conversation highlights the tension between maintaining human expertise—exemplified by REI's in-store green vests—and adapting to digital and AI-driven shopping environments. Lawton and the host examine why consumer co-ops face unique member scrutiny, how mission-driven brands can survive market shifts without compromising core principles, and what it takes to preserve a beloved retail brand over decades.
Hosts introduce LinkedIn Ads as a high-ROAS advertising solution.
Discussion of Creative Planning’s integrated wealth management approach.
Bob Safian introduces Mary Beth Lawton, CEO of REI.
Explanation of REI’s unique cooperative model and member ownership.
Overview of REI’s membership fee, benefits, and annual dividend.
REI’s commitment to environmental stewardship and public land protection.
Strategies for blending in‑store expertise with digital and AI tools.
Discussion of the union-led boycott and REI’s labor negotiations.
Mary Beth Lawton reflects on lessons from her past roles.
Reaffirmation of REI’s long‑term sustainability and mission.
The host shares that customers left Post-it notes on the windows of the shuttered Soho store in Manhattan, illustrating deep customer affection for the retail location.
Studies partnered on by REI show that spending just twenty minutes outside each day provides measurable mental and physical health benefits.
The Private Co-op Modelinsight
REI operates without public shareholders as a private company, meaning it must generate its own cash flow and profit to fund its purpose.
Rescinding Political Supportstory
Lawton explains her decision to publicly apologize and withdraw support for Doug Burgman for Interior Secretary because his positions conflicted with REI's mission.
During her time running digital at Sephora, Lawton helped scale the online business from $250 million to over a billion dollars by shifting resources to mobile early.
Absorbing Inclusive Sizing Costsstrategy
At Athleta, the company consciously absorbed the increased product costs of inclusive sizing without raising prices for customers to stay true to core values.
REI has been around for 88 years. Mary Beth Laughton wants to make sure it’s around for 88 more. The CEO of America’s largest consumer co-op joins Rapid Response to talk about what it actually takes to revive an iconic business — without shareholders, without quarterly earnings calls, and with 26 million members who hold you to a higher standard than any Wall Street analyst ever could. She explains why her first act as CEO was to publicly break ties with a Trump cabinet secretary, and how the co-op structure gives REI a kind of clarity that most retailers can’t buy. Plus lessons drawn from Nike, Sephora, and Athleta on what it really means to lead a mission-driven brand when the values are battle tested, not just stated. Visit the Rapid Response website here: https://www.rapidresponseshow.com/ See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
5,661 words · 7 speakers
Speaker names marked are inferred from speaking time and the show’s known hosts — they are not voice-verified.
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