List the current characteristics of each environmental factor as they relate to REI.
How does the current U.S. economy affect REI retail operations?
REI had managed to maintain a unique market in the sporting goods industry. Undoubtedly the US economy has fluctuated widely between bull and bear in the seventy five years of the company’s existence. The United States economy as of late has seen some environmental changes, social and cultural, demographic considering products and promotion.
We have seen the insurgence and shift in the US economy and those that are primary contributors. The baby boomers being one of the largest segment of the population are beginning to retire and generation x and millennials turn the wheels to the economy, this demographic shift may be one of the contributing factor to boosting the sales of REI. "REI sales grew 55% between 2008 and 2014"(), important to note 2008 being the height of the country’s economic downturn and 2014 seeing the shift in lower unemployment rate averaging 6.1%. REI 's focus on the product and developing products and services that evolves with the economy has worked to their benefit. With confidence in the economy individuals in all demographic categories are more comfortable in their spending, leading us to where REI stands in today 's economy.
2. Social and Cultural elements has seen individuals making fitness and sporting goods life goals. Eating healthy, exercising along with calls for better life choices. Sustainability and conservation is also a huge part of this new culture and companies that make this a priority to maintain the earth for future generations has seen consumer dedication at its highest. The global e...
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...in what is called the information age, where the evolution of technology and the access to information is quick and easy. It has made resources more abundant, REI along with many retailers have used this to their benefit, as we see the rise in e-commerce.
Technology has changed the environment of retail and how the business views all elements of a business. From a products point of view, retailers have the ability track customer interest, real time inventory tracking and expand ones target market with the use of technology.
2. The use of technology for promotion is big business, you can gain a whole new market witch the use of technology without the use of traditional brick and mortar stores. Customers especially those who are looking for companies that focus primarily on their lifestyle choices tend to benefit in this new technology space such as that with REI.
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