What REI Co-op is and how it differs from a food co-op

REI Co-op is a consumer cooperative that sells outdoor gear, clothing, and equipment rather than food. Like a food co-op, it is owned by its members rather than by shareholders, and members receive a share of the profits through annual dividends and member discounts. The main difference is what you are buying: REI focuses on camping, hiking, climbing, cycling, skiing, and water sports gear instead of groceries.

REI has physical stores in most U.S. states and operates an online store. Members pay an upfront membership fee and then receive discounts on purchases year-round. The co-op also runs rental programs for gear like skis, camping equipment, and bikes, which members can use at a lower cost than non-members.

REI is much larger than most food co-ops — it has over 200 stores and millions of members — but the ownership structure is the same: members own the business collectively, and profits are returned to members rather than paid to outside investors.

Key Takeaways

  • REI membership costs $20 one time, and members receive a 10 percent discount on most purchases for life.
  • Members receive an annual dividend check based on their spending that year, typically between 4 and 10 percent of may be able to access purchases.
  • REI operates physical stores and an online shop, so you can browse in person or order from home.
  • Non-members can shop at REI but pay full price and do not receive dividends or the member discount.
  • REI also rents outdoor gear to members at discounted rates, which can save money if you use equipment only occasionally.

REI membership cost and what you get

A one-time membership fee of $20 gives you lifetime membership in REI Co-op. This is a one-time payment, not an annual renewal. Once you pay, you remain a member unless you ask to withdraw, and you keep the member discount and dividend benefits for as long as you shop there.

The 10 percent member discount applies to most items in the store and online, including clothing, backpacks, tents, bikes, and climbing gear. Some items are excluded: sale items, gift cards, and a small number of brands that set their own prices. The discount stacks with REI's regular sales, so if an item is on sale and you are a member, you get both the sale price and the 10 percent member discount.

Members also receive an annual dividend based on how much they spent that year. REI calculates this as a percentage of may be able to access purchases — typically between 4 and 10 percent, though the exact rate varies by year. You receive the dividend as a check or store credit in the spring of the following year. A member who spends $500 in a year might receive a $20 to $50 dividend, depending on that year's rate.

How the annual dividend works

Every spring, REI sends members a dividend check or store credit based on their purchases from the previous calendar year. The dividend rate is set by REI's board and announced in advance. In recent years, the rate has ranged from 4 to 10 percent of may be able to access purchases, though this varies.

The dividend is calculated on most purchases but excludes some items: gift cards, memberships, rentals, and certain services. If you spend $1,000 on gear in a year and the dividend rate is 7 percent, you would receive a $70 dividend. You can choose to take it as a check mailed to your address or as store credit to use on your next purchase.

The dividend is one way REI returns profits to members. Because REI is a co-op, it does not have outside shareholders demanding maximum profit — instead, profits beyond what the business needs to operate are returned to the people who actually shop there.

REI stores, online shopping, and the rental program

REI operates over 200 physical stores across the United States, with locations in most states. You can walk into a store, try on gear, ask staff questions, and make purchases in person. Many stores also have rental departments where members can rent camping tents, sleeping bags, skis, bikes, and other equipment at member rates.

The online store at REI.com lets you browse and order from home. Members receive the same 10 percent discount online as in stores. Shipping costs vary by item and order size, and REI offers free shipping on orders over a certain amount for members (the threshold changes periodically).

The rental program is a significant benefit if you use gear only occasionally. Renting a tent, sleeping bag, and pad for a weekend camping trip costs much less than buying them, and members pay lower rental rates than non-members. You can reserve gear online or in person and pick it up at a store near you.

Who should join REI and when the $20 fee pays for itself

The $20 membership fee pays for itself quickly if you buy outdoor gear regularly. A single purchase of $200 in gear gives you a $20 discount as a member, which covers the membership cost when ready. If you spend $300 or more per year on outdoor equipment, the member discount alone will save you more than the $20 fee, before you even count the annual dividend.

REI membership makes the most sense for people who camp, hike, bike, ski, or climb and buy gear for these activities. If you rarely purchase outdoor equipment, the membership may not be worth the upfront cost. However, if you are planning a major purchase — a new tent, backpack, or bike — joining before you buy can save you money on that single transaction.

The rental program adds value for people who use gear seasonally. If you rent skis twice a winter or camping equipment twice a year, the member discount on rentals can save you $50 to $100 annually, making membership worthwhile even if you do not buy much.

How REI differs from regular outdoor retailers

REI is structured as a co-op, which means members own it collectively and share in the profits. A regular outdoor retailer like Dick's Sporting Goods or a local bike shop is owned by shareholders or a private owner, and profits go to those owners rather than to customers. This ownership structure is the main difference — REI's incentive is to serve members well because members own the business.

REI also tends to have a stronger focus on sustainability and outdoor advocacy. The co-op funds conservation projects and outdoor education programs through a portion of its profits. This is not unique to co-ops, but it flows from the structure: because REI does not have to maximize shareholder returns, it can invest in causes that matter to members.

Prices at REI are generally competitive with other outdoor retailers, though not always the lowest. The member discount and dividend make up the difference for members. Non-members shopping at REI pay full price and may find better deals elsewhere, which is one reason membership is important to the REI model.

How to join REI and manage your membership

You can join REI in person at any store or online at REI.com. The process takes a few minutes: you provide your name, address, email, and phone number, and pay the $20 membership fee with a credit card or debit card. You receive a membership number when ready and can start using your discount right away.

Once you are a member, you can track your purchases and dividend online through your REI account. You can also update your contact information, manage rental reservations, and view your membership status. REI sends dividend notifications by email and mail, so you will know when your annual dividend is ready to claim.

If you ever want to withdraw from membership, you can do so by contacting REI customer service. Your membership does not expire, so you remain a member indefinitely unless you choose to withdraw. There is no penalty for withdrawing, though you would lose the member discount and future dividend may be able to access.

Frequently Asked Questions

Can I use my REI membership at other stores?

No, REI membership is only valid at REI stores and REI.com. It does not work at other outdoor retailers. Some co-ops have partnerships with other businesses, but REI does not have a widespread network of partner stores like some food co-ops do.

What happens to my membership if I do not shop for a year?

Your membership remains active. There is no minimum spending requirement, and you do not lose your membership if you do not shop for a period of time. You keep the member discount and remain may be able to access for dividends whenever you do make a purchase.

Can I gift my REI membership to someone else?

No, membership is tied to the individual who paid the $20 fee and is non-transferable. However, anyone can join REI by paying their own $20 membership fee. If you want to give someone the gift of REI membership, you can buy them a gift card or pay their membership fee as a gift.

Does REI offer a student or military discount in addition to the member discount?

REI offers periodic promotions and discounts for specific groups, but these vary by time and location. Check REI.com or ask in a store about current discounts. Member discounts and dividends are the primary ongoing benefits for all members regardless of status.

How do I know what my dividend rate will be each year?

REI announces the dividend rate in advance, usually in late winter or early spring. The rate depends on the co-op's financial performance that year. You can find the current and historical dividend rates on REI.com or by asking staff in a store.