- Patagonia has solidified itself as the rare company to successfully use social good, environmentalism, and political activism to drive growth, thanks to a strategy put in place by CEO Rose Marcario.
- Meanwhile, REI continues to report impressive sales, with a reported $2.78 billion in revenue in 2018, marking 15 consecutive years of record profits.
- We visited Patagonia and REI stores and saw why Patagonia, even with a smaller assortment of products, continues to set itself apart from its large-scale outdoor apparel competitors.
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While outdoor retailers Patagonia and REI are equally beloved by outdoor enthusiasts, Patagonia’s commitment to improving the environment is undeniably setting an example for how social good can benefit the bottom line.
For many major corporations, finding a way to sell products while also fighting global issues like climate change is a particularly delicate balance. However, Patagonia has become the gold standard for integrating social good programs into its business strategy in a way that not only helps the company profit, but sets a standard for retail peers. After the company published a full-page ad in The New York Times in 2011 with the caption "Don’t Buy This Jacket" — an eye-catching message that urged against over-consumption and encouraged consumers to repair clothing through its Worn Wear initiative — Patagonia sales increased by a staggering 30% in 2012.
In recent years, Patagonia has continued to gain traction as a result of outspoken political action taken by CEO Rose Marcario, a staunch critic of the Trump administration’s cuts to environmental programs. Marcario continues to take a no holds barred approach to protecting wildlife: In 2017, Patagonia sued President Trump for reducing the size of two national monuments and teamed up with Levi’s to close their stores to allow employees to vote in the midterm election as part of the Time To Vote initiative.
That’s not to say REI, the outdoor retailer behemoth founded in 1938, is not without its own merits. Similarly to Patagonia, REI has boycotted Black Friday in recent years as part of its #OptOutside campaign and remained closed on Thanksgiving, as its retail peers increase hours of operation and doorbusters in response to dwindling foot traffic. Though it has fewer programs dedicated to social and environmental programs, it does have a section of the site dedicated to lightly used and recycled gear, where shoppers can snag items for 70% off. (Patagonia has a similar site, part of its Worn Wear program.)
Still, it’s hard not to ignore Patagonia’s underlying social mission, which was ubiquitous while browsing its brick-and-mortar store. We visited both Patagonia and REI to see how Patagonia’s commitment to grassroots environmental programs is ultimately unifying customers and bolstering sales.
We visited REI first, at its sprawling flagship store in Manhattan.
Bethany Biron/Business Insider
As soon as you walk into the store, you find rows of brightly colored bicycles, catering to varying levels of intensity and performance ability.
Bethany Biron/Business Insider
The bicycle section comes equipped with accompanying helmets of course. Safety first.
Bethany Biron/Business Insider
See the rest of the story at Business Insider
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Source: Business Insider – feedback@businessinsider.com (Bethany Biron)