REI’s leadership change on Wednesday is the latest in a series of leadership turnover in outdoor retail, reflecting the industry’s challenges of navigating a post-pandemic landscape.

Among the largest outdoor retailers in the United States, REI announced CEO Eric Artz was retiring and would be replaced by Mary Beth Laughton. A retail veteran and former REI board member, Laughton was a top executive at Nike and recently headed Athleta, Gap’s athletic wear line.

“No other company balances purpose and performance quite like REI, and we must ensure it thrives for generations to come,” Laughton said.

Laughton will be tasked with turning around a company that has posted losses for two consecutive years.

Sales fell 2.4% in 2023, the most recent reporting year, with the company posting a loss of $311 million.

Laughton’s appointment came two weeks after REI announced the shuttering of its Experiences Businesses, while shedding 438 jobs.

Artz explained the program, which included guided adventure travel, day tours, and outdoor classes cost “significantly more to run than it brings in.”

The change in management at REI follows a report that Canadian retailer Mountain Equipment Company (MEC) will be sold again, 5 years after it transitioned from a co-op to a private company. If the deal goes through, MEC would join Moosejaw, Eastern Mountain Sports, and Backcountry as major outdoor retailers experiencing ownership changes over the past two years.

The upheaval in the outdoor retail industry comes on the heels of a surge in outdoor equipment demand during the pandemic followed by a slowdown in purchases and an inventory surplus.

Nevertheless, industry leaders expressed cautious optimism that the turn of the calendar to 2025 will bring a more positive outlook.

“As 2024 winds down, it feels like the major inventory glut of the last few years is fading and open-to-buy is returning,” former Moosejaw CEO Eoin Comerford told SGB Media in early January.

Industry leaders see eco-friendly and sustainable products as a way to rekindle consumer interest, offering fresh value to a saturated market. Additionally, the revenge travel trend, where pent-up demand for vacation trips was released along with the easing of pandemic travel restrictions, has seemingly cooled and consumer sentiment heading into 2025 is mostly positive.

“Health and wellness will continue to be front of mind for our consumers, leaving the door open for lower-cost outdoor recreation to cycle back and begin to gain some momentum,” Global General Manager of Gregory Mountain Products, John Sears, told SGB Media.

Headwinds, particularly related to tariffs, remain, but Laughton is among many executives in the outdoor industry aiming to move past the post-pandemic struggles as those days fade into the past.

Laughton’s leadership begins as REI reports “significant improvement” in recent business growth, with the leadership team commenting “on the growth the co-op saw at the end of 2024.”