Why Does Everyone Hate REI Now?

Overview

The video argues that the backlash against REI is real but oversimplified. Some criticisms reflect legitimate shifts as REI grew and faced financial stress, while others may be exaggerated or missing context.

The speaker—an REI customer for nearly 20 years—concludes that the situation is “more complicated than either side makes it sound.”

Why People (Suddenly) Hate REI

The presenter says many online complaints cluster into a few main themes:

• REI is “no longer a cooperative,” has become “too corporate,” and allegedly abandoned employees
• REI is losing money and “forgot” what made customers love it
• Some critics claim REI is “dying”

The speaker frames the central question as whether this is mostly attention-driven “bashing” or whether meaningful changes truly occurred.

The “Old REI” the Presenter Remembers—and Why It Mattered

To explain today’s anger, the speaker describes what created loyalty:

• Expert help: Staff were portrayed as real outdoor practitioners who used gear themselves (not just aisle employees), making expensive purchases feel safer.
• Membership/co-op benefits: Members received cash-back rewards (framed as roughly 10% off eligible purchases) and participated in a cooperative identity rather than only transactions.
• Return confidence: The well-known return policy signaled that REI would stand behind products.

The speaker also highlights REI’s origin story (1938): a group of outdoor enthusiasts pooled resources to provide quality gear at fair prices, rather than building a venture to exploit a retail niche.

Key Policy/Operational Changes—and Why They’re Contested

One of the most frequently cited examples of “REI lost its soul” is:

Return policy limits (2013)

The presenter personally disliked the change but offers context:

• The old “unlimited satisfaction” style policy was widely abused
• REI says returns extending beyond intended use were growing, and the prior policy was not sustainable
• Even after the change, members still receive a generous warranty/return framework, including support for defects returned later

Growth and Financial Pressure

The presenter argues that scale changes culture. REI has grown beyond a small cooperative model, including:

• ~26 million members
• nearly 200 stores
• ~$3.5B in annual sales

The video also points to financial losses and retrenchment:

• Heavy losses in 2022–2023
• In 2024, REI cut 357 jobs to reduce costs and restore profitability
• In 2025, REI closed its adventure business, cutting 180 full-time and 248 part-time guide roles; REI reportedly said the experiences never turned a profit even at peak

The presenter acknowledges a company that can’t make money can’t sustain its mission, and notes that financial performance reportedly improved in 2025 (losses reduced to about $54M on $3.54B sales). Still, the speaker argues financial pressure can also expose “true priorities.”

Employee Unrest and Unionization Conflict

The speaker presents this as the most troubling issue:

• Since 2022, employees at 11 stores voted to unionize
• After negotiations, in February 2026, employees at those stores voted in favor of REI’s contract offer, with 98.5% voting against (per the summary)
• The speaker notes REI says negotiations reached an impasse and began implementing terms from its final offer, while unions dispute that a legal impasse existed and appealed

The unions are also described as organizing a boycott of REI’s anniversary sale, with claims of 70,000+ shoppers pledging not to shop.

The presenter emphasizes uncertainty: they are not part of the negotiations, so they can’t definitively judge who is correct. However, they argue the situation is a legitimate brand/values problem if workers feel REI isn’t living up to its commitments.

Cooperative Governance Controversy (Member vs. Board Power)

Another criticism that surprised the presenter:

• Members vote for board directors, but under current bylaws, nominations can only be formally made by the existing board
• The speaker claims that in 2025, members voted on three proposed candidates and none were elected
• The board allegedly then appointed three different directors to fill vacancies, intended to stand for election later (e.g., in 2028)

The presenter frames this as a key question: how much influence members really have if the council controls candidate selection and can also fill vacancies.

Evidence That REI Still Does “Mission-Like” Things

To avoid portraying REI as purely abandoning its mission, the speaker lists ongoing benefits and investments:

• REI closes stores on Black Friday and pays employees to go out (described as a permanent benefit since 2022)
• Employees receive discounts and benefits such as:
  • free equipment rentals
  • outdoor programs
  • paid outdoor days
  • paid participation opportunities (including “creative vacations” for full-time employees)
• In 2025, REI reportedly distributed over $200M in member rewards
• REI invested about $12M through its Collaborative Action Fund in hundreds of nonprofits supporting open spaces
• The video asserts REI continues supporting sustainability, public lands, and getting people outdoors

Overall Conclusion: Not “Dead,” but a Test of Whether Trust Can Survive Growth

The speaker’s final stance is two-sided:

• They reject simplistic claims that REI has fully abandoned its values
• They also reject dismissing complaints as just internet hype

Growth has brought changes that may be justified (like ending abused return practices and closing unprofitable units). But the speaker worries REI could become “just another giant retailer with a mountain logo.”

What REI uniquely provides—according to the speaker—is trust, delivered in-store by knowledgeable, enthusiastic staff who guide beginners.

They still recommend REI to beginners, but say the key things to watch are:

• how employee relations evolve
• whether members retain meaningful governance influence

Presenters/Contributors

• Single presenter/author (unnamed): The speaker who narrates the entire video analysis (no other contributors are credited in the subtitles).