Former Athleta CEO to take reins of REI
There’s going to be a change in leadership of the country’s largest consumer co-op.
Eric Artz will retire as president and CEO of REI Co-op in March. Artz, who has served in the post since May 2017, will be succeeded by Mary Beth Laughton, who will join the outdoor gear and apparel retailer as president on Feb. 3, before assuming full CEO responsibilities on March 31. Her appointment follows a planned succession process, the retailer said.
Most recently, Laughton, who is a former REI board member, led Nike’s global retail and digital direct-to-consumer business. She also held leadership roles at Gap Inc.’s Athleta brand, where she served as CEO from September 2019 to March 2023.
Prior to Athleta, Laughton was executive VP of omni retail for Sephora U.S., leading both the e-commerce and stores channels. Before that role, she served in senior marketing roles at the company, which she joined in 2012.
Before joining Sephora, she spent nearly a decade at Nike, in a variety of roles, including general manager of e-commerce for Europe and the director of e-commerce for Nike subsidiaries, including Cole Haan, Converse and Hurley.
“Eric has led and stabilized REI through some of the most challenging years the retail sector and our co-op ever faced,” said Chris Carr, chair of the REI board. “REI is in a strong position today because he always kept our purpose, values, and people as his north star. Mary Beth has the ideal experience to build on this foundation and to lead REI forward into our next chapter. The world needs a strong REI, and we are confident Mary Beth will hit the ground running.”
[READ MORE: REI to exit Experiences business after 40 years]
In a letter to employees, Artz wrote that “serving you and this enduring organization has been the honor of my professional life.”
“Being outside means something different for everyone and our job is not to tell people what that looks like,” he stated. “It is to show one another and to welcome others, always making time outside more accessible to more people in more ways. That is worth fighting for.”
Laughton joins REI as the company has been working to improve its performance. For 2023, REI reported a loss of $311 million; revenue fell 2.4% to $3.76 billion. It also has laid off employees. Earlier this month, REI said it was closing its Experiences business, resulting in the lay off of 428 employees (180 full-time and 248 part-time).
[READ MORE: REI to exit Experiences business after 40 years]
In announcing the change in leadership, REI said it expects to meet its 2024 goals of break-even operating profit (pre-dividend operating income) and near break-even free cash flow, which represents “a significant improvement versus 2023 for both metrics. ”
Laughton will be based in the REI office in Issaquah, Wash., when she is not working in-store or on the road, according to the company.
“No other company balances purpose and performance quite like REI, and we must ensure it thrives for generations to come,” said Laughton. “That is a big responsibility – one I embrace with utmost respect for our millions of members and the thousands of employees whose passion for life outside and deep expertise set the co-op apart.