REI Co-op: How the Outdoor Retailer Works and What to Know Before You Shop

REI is a member-owned cooperative, not a traditional retailer, and that changes how you shop there

REI (Recreational Equipment, Inc.) operates as a consumer cooperative, meaning customers who pay a one-time membership fee become part-owners of the company. Unlike Dick's Sporting Goods or other chain retailers, REI returns profits to members as annual dividends and gives members voting power on company decisions. The membership fee is $20, and you receive a dividend check each year based on your purchases—typically between 10 and 20 percent of what you spent on REI brand items and full-price merchandise.

The cooperative model affects what you'll find in stores and online. REI prioritizes outdoor gear, hiking, climbing, camping, and cycling equipment over fashion-forward sportswear. You'll find technical layers, waterproof jackets, and durable boots rather than trendy athletic wear. The company also limits markups on products and refuses to carry certain brands it considers overpriced or low-quality, which narrows your choices but often means better value per dollar spent.

REI has physical stores across the United States—most in the West and Northeast, with growing presence in the Southeast—plus a full online shop with the same prices and return policy in both places. The company also runs rental programs for camping and climbing gear at many locations, allowing you to test equipment before buying.

Key Takeaways

• Your $20 membership fee gives you annual dividend payments, voting rights, and access to member-only sales and discounts throughout the year.
• REI specializes in technical outdoor gear and equipment rather than fashion sportswear, so the selection differs from mainstream athletic retailers.
• REI's one-year return policy is among the most generous in retail, even for used gear, which reflects the cooperative's member-first approach.
• REI rental programs at many locations let you borrow camping tents, climbing gear, and other equipment for a fraction of the purchase price.
• REI Garage sales and clearance sections offer significant discounts on returned, slightly damaged, or discontinued items multiple times per year.

How membership works and what you actually get

When you pay the $20 membership fee, you become a member for life—you never pay it again. REI sends you a membership card and a welcome packet with a 10 percent discount code good for your first purchase. After that, you earn a dividend each April based on your spending from the previous calendar year. The dividend rate varies but typically ranges from 10 to 20 percent on REI brand and full-price items; sale items and clearance merchandise usually earn a lower dividend rate or none at all.

Members also receive early access to sales, invitations to member-only events, and discounts on REI classes and workshops. If you rent gear through REI, your membership gives you a discount on rental rates. The membership card works at any REI location and online, and you can check your dividend balance and purchase history through the REI website or mobile app.

Non-members can shop at REI without joining, but they pay full price and receive no dividend. The math usually favors joining if you plan to spend more than $200 in a year, since your dividend will likely exceed the $20 membership cost. If you shop only occasionally, you can decide whether the membership makes sense based on your expected spending.

What REI carries and how it differs from other sportswear retailers

REI's inventory focuses on functional outdoor gear rather than athletic fashion. You'll find hiking boots, technical base layers, waterproof shells, climbing harnesses, backpacks, tents, sleeping bags, and cycling components. The clothing tends toward neutral colors and practical features—pockets, reinforced seams, weather resistance—rather than bold designs or trend-driven styles. Brands carried include The North Face, Patagonia, Arc'teryx, Salomon, and REI's own house brand, which offers solid quality at lower prices than name brands.

REI does not carry mainstream athletic brands like Nike, Adidas, or Lululemon. If you're looking for running shoes, REI stocks technical trail runners and hiking boots but not the latest basketball or lifestyle sneakers. The company also avoids fast-fashion outdoor wear, meaning you won't find cheap knockoffs of technical gear—everything is built to last and priced accordingly.

This narrower focus means REI is ideal if you're outfitting yourself for a specific outdoor activity—backpacking, rock climbing, mountain biking, kayaking—but less useful if you want general athletic wear or fashion-forward sportswear. For those needs, Dick's Sporting Goods, Academy Sports, or specialty running stores may serve you better.

REI's return policy and why it matters

REI allows returns within one year of purchase, with no questions asked and no receipt required if you have your membership card. You can return items even if they're used, worn, or damaged—the policy is genuinely one-year, one-price, no-questions. This is unusual in retail and reflects REI's philosophy that members should feel confident buying gear they might not use or that might not work out.

The catch is that REI will refund your original payment method, but if you bought an item on sale, you receive the sale price back, not the full price. If you bought a $100 jacket on sale for $70 and return it a month later, you get $70 back. This encourages members to buy full-price items when they're uncertain, since the dividend and return policy make the risk lower than at other retailers.

Non-members can also return items within 30 days with a receipt, which is standard for retail. The one-year policy is a membership benefit that pays for itself if you ever need to return a piece of gear.

REI Garage sales and clearance sections

REI runs Garage sales several times per year at most locations, selling returned, slightly damaged, or discontinued items at steep discounts—often 30 to 50 percent off. These sales are announced on the REI website and through email to members, and items sell quickly. Garage sales are held in-store and online, and you can browse what's available before heading to a location.

REI also maintains a permanent clearance section online and in stores where you can find end-of-season gear, overstocked items, and discontinued colors or styles. Clearance prices are lower than regular sale prices, though selection varies by location and season. Checking the clearance section regularly can yield good deals on quality gear, especially if you're flexible about color or exact model.

Both Garage sales and clearance items are final sale—you cannot return them—so inspect carefully before buying. However, the discounts are deep enough that even a final-sale purchase often costs less than a full-price item from a competitor.

REI rental programs and how to use them

Many REI locations offer gear rental for camping, climbing, and skiing equipment. You can rent a four-season tent, sleeping bag, and pad for a weekend for a fraction of the purchase price, which makes sense if you're trying an activity for the first time or don't want to invest in gear you'll use rarely. Rental rates vary by location and item, but a weekend tent rental typically costs $15 to $30, compared to $200 to $400 to buy.

To rent, you need a valid ID and a credit card. Members receive a discount on rental rates, and you can reserve gear online or by phone at locations that offer rentals. Rental periods are typically 24 hours, three days, or a week, and you return the gear clean and in working condition. If you damage rental gear, you may be charged a damage fee, so read the rental agreement carefully.

Not all REI locations have rental programs—they're most common at larger stores in outdoor recreation areas. Check the REI website or call your local store to see what's available near you. Rentals are a good way to test whether you want to buy a particular item or activity before committing to the expense.

How to shop at REI online and in stores

REI's website and mobile app let you browse inventory, check prices, read customer reviews, and place orders for delivery or in-store pickup. Prices are the same online and in stores, and you use your membership card or account number for both. Online orders ship free to your home if you spend $50 or more, or you can pick up orders at a store within a few days at no charge.

In-store shopping at REI includes access to staff who can help you find gear suited to your needs and activity level. Many stores have fitting areas for boots and climbing walls where you can test gear before buying. REI also offers free classes and workshops on topics like backpacking basics, bike maintenance, and navigation—these are often held in-store and open to members and non-members alike.

If you're new to an outdoor activity, visiting a physical REI location can be more helpful than shopping online, since staff can answer questions and help you avoid expensive mistakes. If you know exactly what you want, online shopping is faster and just as reliable.

Frequently Asked Questions

Is the $20 membership fee worth it?

Yes, if you spend more than $200 per year at REI. Your dividend will likely exceed $20, and you gain access to member-only sales and the one-year return policy. If you shop at REI only occasionally, the membership may not pay for itself, but the $20 is a one-time cost, so you can join whenever you're ready to make a larger purchase.

Can I return used or damaged gear within the one-year window?

Yes. REI's one-year return policy allows returns on used, worn, or damaged items with no questions asked. You'll receive a refund for the price you paid, though if you bought the item on sale, you get the sale price back, not the original full price.

What's the difference between REI brand and name-brand gear?

REI brand items are made by REI and tend to offer good quality at lower prices than established outdoor brands like Patagonia or Arc'teryx. Name brands often have more specialized features or lighter weight, which justifies the higher cost. For most people starting out, REI brand gear is reliable and affordable; as you get more serious about an activity, you may invest in name brands.

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

No. Non-members can shop at REI and return items within 30 days with a receipt. However, members receive a dividend, access to member-only sales, and a one-year return window, which makes membership worthwhile if you plan to shop there regularly.

Where can I find an REI store near me?

Use the store locator on the REI website to find locations, hours, and services offered at stores near you. Not all locations have rental programs or the same selection, so checking ahead can save you a trip if you're looking for something specific.