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 REI membership card — rather than by outside shareholders. You cannot buy REI stock on any stock exchange, and the company does not answer to public investors the way a traditional retailer does.

This ownership structure shapes how REI operates and how it handles profits. Because members own the company, REI returns a portion of profits to members as an annual dividend, usually paid in April. The amount varies year to year based on company performance, but in recent years has ranged from around 5 to 11 percent of may be able to access purchases made during the previous year.

Key Takeaways

  • REI is owned by its members through a cooperative structure, not by public shareholders, so you cannot purchase REI stock on any exchange.
  • Members receive an annual dividend — typically 5 to 11 percent of may be able to access purchases — because profits are returned to owners rather than paid to external investors.
  • REI membership costs $20 and is required to receive the dividend; non-members can shop but do not earn a return on purchases.
  • The cooperative structure means REI's board of directors is elected by members, giving owners a voice in company decisions.
  • REI's private ownership has allowed it to prioritize environmental and social causes without pressure from public shareholders focused solely on stock price.

How REI's cooperative structure differs from a traditional corporation

A publicly traded company sells shares to investors, who own pieces of the business and expect returns through stock price increases and dividends. Those shareholders elect the board and influence company direction. REI operates the opposite way: members buy a membership for $20, and that membership gives them an ownership stake and voting rights. The more members shop, the more they benefit through the annual dividend.

This structure has real consequences for how the company makes decisions. REI does not face pressure to maximize quarterly earnings for Wall Street analysts. Instead, the board — elected by members — can pursue longer-term goals like environmental sustainability, fair labor practices, and community investment without worrying that a focus on profit will tank the stock price. REI has used this freedom to take positions that a publicly traded outdoor retailer might avoid, such as closing stores on Black Friday to encourage people to spend time outside instead of shopping.

What membership means and how the dividend works

REI membership is open to anyone and costs $20 for a lifetime membership (or $0 for a digital membership with limited benefits). Once you are a member, you earn a dividend on most purchases made at REI stores and online. The dividend is calculated as a percentage of your may be able to access spending and is paid once per year, usually in April.

The dividend percentage changes annually. In 2023, REI paid a 10 percent dividend; in 2024, it was 11 percent. The exact amount depends on REI's financial performance that year. Non-members can shop at REI but do not earn a dividend, so they pay full price on every purchase. Members effectively get a rebate on their spending, which over time can offset or exceed the $20 membership cost for regular shoppers.

How member voting and governance work at REI

Because REI is member-owned, members have the right to vote on major company decisions and to elect the board of directors. Each member gets one vote, regardless of how much they spend. This is different from a public company, where voting power is tied to the number of shares you own — someone with 1,000 shares has 1,000 votes, while someone with one share has one vote.

REI holds an annual meeting where members can vote on board candidates and other matters. Not all members attend or vote, but the structure exists to give owners a formal say in the company's direction. In practice, most members do not actively participate in governance, but the option is there, and major decisions do require member approval.

Why REI chose and maintains its cooperative structure

REI was founded in 1938 as a consumer cooperative and has remained one throughout its history. The founders believed that a company owned by its customers would better serve those customers' interests than a company owned by distant investors. That philosophy has stuck: REI has turned down multiple opportunities to go public or be acquired by larger corporations, choosing instead to remain member-owned.

This choice has allowed REI to operate with a different set of priorities than competitors. The company has invested heavily in environmental causes, donated millions to conservation nonprofits, and taken public stances on issues like climate change and outdoor access. A publicly traded company might face shareholder pressure to cut such spending and focus purely on profit. REI's structure gives it the freedom to balance profit with purpose.

Comparing REI to other outdoor retailers and their ownership

Most large outdoor retailers — including The North Face (owned by VF Corporation, a public company), Patagonia (now owned by a nonprofit trust after founder Yvon Chouinard transferred it), and Dick's Sporting Goods (publicly traded) — are either publicly traded or owned by larger corporations. REI stands out as one of the largest outdoor retailers in the United States that remains a consumer cooperative.

This difference matters for how these companies operate. A public retailer must answer to shareholders and typically focuses on maximizing profit and stock price. Patagonia's shift to nonprofit ownership was itself a notable move — founder Chouinard wanted to ensure the company would prioritize environmental protection over profit, similar to REI's cooperative model. REI's structure has given it that freedom from the start.

What this means for REI customers and members

REI's cooperative structure affects you as a customer in several concrete ways. First, if you shop at REI regularly, membership pays for itself through the annual dividend within a few years for most people. Second, you have a theoretical voice in company decisions through member voting, though in practice most members do not exercise this right. Third, you benefit from REI's willingness to prioritize causes beyond pure profit — the company's environmental commitments, fair labor standards, and community programs reflect member ownership rather than shareholder pressure.

The downside is that REI cannot raise capital by selling stock to the public, which limits how quickly it can expand. This is partly why REI has fewer stores than some competitors and why it has been more selective about growth. The cooperative structure also means REI's profits stay within the company and are returned to members rather than being available to outside investors.

Frequently Asked Questions

Can I buy REI stock?

No. REI is not publicly traded and does not issue stock that you can purchase on any exchange. The only way to own a piece of REI is to become a member by paying the $20 membership fee, which gives you an ownership stake and the right to receive an annual dividend.

How much is the REI dividend each year?

The dividend varies based on REI's annual financial performance and typically ranges from 5 to 11 percent of your may be able to access purchases during the previous year. It is paid once per year, usually in April. You can check REI's website or ask in-store for the current year's dividend percentage.

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 earn a dividend on purchases. Membership costs $20 for a lifetime membership and is worth it if you shop at REI regularly, since the annual dividend usually exceeds the membership cost within a few years.

What happens to REI's profits if it is not publicly traded?

REI's profits are returned to members through the annual dividend, reinvested in the company to improve stores and services, or donated to environmental and community causes. Because there are no outside shareholders demanding returns, REI can balance profit with its mission in ways a public company typically cannot.

Has REI ever considered going public?

REI has received acquisition offers and pressure to go public over the years but has consistently chosen to remain member-owned. The company's leadership believes the cooperative structure better serves members' interests and allows REI to prioritize environmental and social causes alongside profit.