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Business connections - co-ops working together?

Just read in Guardian about MEC (Mountain Equipment Co-op) in Canada and how it is doing poorly and so its 'management team' decided to sell out to a US private equity firm - without even bothering to poll its members.

I wonder if REI could consider to form some type of relationship with MEC?  It might accomplish several good outcomes:

1: expand Co-op movement

2: help to foster better cross border relations

3: open cross company activities to support economic stability and maybe even sound retail growth

4: there could be more advantages

5: obviously, there could be disadvantages, but, looking at it from the positive side, I am just thinking that some form of co-operative relationship might be good during these times.

2 Replies

As a Canadian member of both MEC and REI I've long thought that more co-operation between the two co-ops would be mutually beneficial.

In addition to the reasons you give I'd add that there would be economies of scale. Currently both MEC and REI offer house-branded products. These are designed by each co-op and then sourced individually. It would make more sense to use a common design then combine buying power. This would improve the quality, increase the feature sets and keep prices low.

As it happens MEC's history starts with REI. Back in the 1970s a few students from University of British Columbia in Vancouver would drive down to Seattle to get quality climbing gear at reasonable prices from REI. Their colleagues and friends then asked them to pick up gear on their behalf. Soon the volume of this informal business got out of hand. MEC got created to meet the growing market for outdoors gear. Word got out and MEC soon expanded to offer products by mail order across Canada as well as opening a few stores in western Canada. That's when I became a member and started buying almost all my outdoors stuff from MEC.

Of course now it's too late to explore this concept further. While there are petitions, fund raising and court challenges on how the sale of MEC was conducted (specifically for the reason you cited--members weren't consulted), it's likely the sale will go through. It would be an understatement to say that I'm disappointment with that result.

It would be interesting to know if REI considered buying MEC when it was up for sale and if so why they didn't.

...Wanderer


Superusers do not speak on behalf of REI and may have received
one or more gifts or other benefits from the co-op.
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The plot, as they say, thickens: Members fighting sale of MEC say planned COO hire clashes with Canadian company's values

...Wanderer


Superusers do not speak on behalf of REI and may have received
one or more gifts or other benefits from the co-op.
0 Likes