REI is not publicly traded — it's a consumer cooperative owned by its members

REI Co-op is structured as a consumer cooperative, not a corporation with publicly traded stock. This means the company is owned by its members — the people who shop there and hold a membership card — rather than by outside shareholders. You cannot buy REI stock on any stock exchange.

The cooperative structure shapes how REI operates in ways that matter to members. Profits are returned to members as annual dividends based on their purchases, rather than flowing to distant investors. Major decisions about the company's direction are made by a board elected by members, not appointed by a group of large shareholders.

This ownership model has been in place since REI's founding in 1938 and remains central to how the company describes itself and its mission.

Key Takeaways

  • REI is owned by its members through a cooperative structure, so there are no publicly traded shares to buy.
  • Member-owners receive annual dividends based on what they spent at REI that year, typically ranging from 5% to 10% of may be able to access purchases.
  • REI's board of directors is elected by member-owners, giving members a voice in company decisions.
  • The cooperative structure means REI's profits stay within the organization rather than being distributed to outside shareholders.

How REI's Cooperative Ownership Works

When you buy a REI membership, you become a part-owner of the company. This is different from being a customer at a regular retailer. As a member-owner, you have the right to vote in REI's annual elections and receive a share of the company's profits.

REI membership costs $20 for a lifetime membership (as of the most recent pricing). Once you join, you earn a dividend on your purchases. The dividend percentage varies year to year based on REI's financial performance, but members typically receive between 5% and 10% back on may be able to access purchases made during the previous calendar year.

The board that oversees REI is elected by member-owners through a voting process. This means the people running the company are accountable to the membership, not to outside investors trying to maximize stock price.

Why REI Chose the Cooperative Model

REI was founded by outdoor enthusiasts who wanted to create a company that would reinvest profits back into the community of people who used it, rather than extracting money for distant shareholders. The cooperative structure was a deliberate choice to align the company's incentives with its members' interests.

This model affects business decisions in visible ways. REI has committed to paying higher wages than many retail competitors, investing in employee benefits, and supporting outdoor conservation — decisions that might be harder to justify to shareholders focused purely on profit maximization. The cooperative structure allows REI to prioritize member value and community impact alongside financial returns.

What This Means for Your Membership

Because REI is not publicly traded, you cannot invest in the company by buying stock. However, you can become a member-owner by purchasing a membership and shopping there. Your membership gives you voting rights and dividend returns, making you a direct stakeholder in the company's success.

The lack of public trading also means REI's financial information is not published in the same way as publicly traded companies. REI does release annual reports and financial summaries to members, but these are not filed with the Securities and Exchange Commission or available through stock market databases.

How REI Finances Growth Without Public Stock

REI funds expansion and operations through member purchases, retained earnings, and debt financing — the same tools available to any large private company. The cooperative does not need to issue stock to raise capital because it has a stable, growing membership base that generates consistent revenue.

When REI opens new stores or invests in technology, that money comes from profits reinvested in the business or from loans the company takes on. This approach means REI can make long-term decisions without pressure to deliver quarterly earnings growth to shareholders.

The Difference Between REI and Publicly Traded Outdoor Retailers

Other outdoor retailers like Dick's Sporting Goods and The North Face (owned by VF Corporation) are publicly traded companies. Their shareholders expect quarterly profits and stock price growth. REI, by contrast, can prioritize member returns and long-term sustainability over short-term stock performance.

This structural difference does not make REI "better" or "worse" — it straightforward means the company operates under different incentives and constraints. Members benefit from dividend returns and voting power; shareholders in public companies benefit from potential stock appreciation and dividends paid by those companies.

Frequently Asked Questions

Can I buy REI stock on the stock market?

No. REI is not publicly traded, so there is no REI stock to buy on any exchange. The only way to own a piece of REI is to become a member by purchasing a membership and shopping there.

Do I have to be a member to shop at REI?

No. Non-members can shop at REI stores and online, but they do not receive the annual dividend or voting rights. The membership fee is $20 for a lifetime membership, and most members earn back that cost in dividends within the first year or two of shopping.

What happens to my membership if REI goes public?

REI has stated no plans to go public. The cooperative structure is fundamental to the company's identity and mission. If that were to change, it would be a major decision requiring member approval, but this is not a realistic scenario based on the company's current direction.

How much dividend will I receive as a member?

The dividend percentage varies each year based on REI's financial performance. In recent years, it has typically ranged from 5% to 10% of may be able to access purchases made during the previous calendar year. REI announces the dividend rate in early spring for the prior year's purchases.

Can I sell my REI membership to someone else?

No. REI membership is personal and non-transferable. When you become a member, you own a membership in the cooperative, but you cannot sell it to another person or trade it like a stock.