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REI, a well-known outdoor retailer recognized for its iconic OptOutside campaign, has announced plans to review its US PR business. The company initiated a comprehensive review earlier this year, with more than a dozen agencies participating in the initial round. Sources suggest that REI aims to make a decision by mid-2024 to handle US national brand awareness and earned media work, with an estimated contract value of between $10 million and $14 million.
In the past, REI has worked with Edelman on its high-profile Black Friday OptOutside campaign, which received numerous industry accolades, including SABREs and a Cannes Lions Grand Prix in 2016. The campaign encouraged employees and customers to spend Black Friday outdoors instead of shopping by closing its stores for the day. Despite repeated requests for comment, REI has not responded to inquiries about the PR review.
The decision for the PR review comes after a challenging year for REI in 2023, where the company experienced a 2.4% decrease in revenue amounting to $311 million, resulting in several rounds of layoffs that cost hundreds of employees their jobs. In a letter to employees in January, president and CEO Eric Artz mentioned that he anticipates continued challenging conditions throughout 2024.
Established in 1938 by a group of climbers, REI has grown into one of the largest outdoor retailers in the US today, employing over 16,000 individuals and operating 181 locations across the country. The retailer operates as a retail cooperative owned collectively by its 23 million members.
