L Few retailers allow customers to test ride mountain bikes on special indoor trails or let them pour water through different filtration devices before they decide which model to purchase. An open invitation to "try it before you buy it" is just one reason Recreational Equipment, Inc. (REI), stands out in the world of retailing.
REI was founded in 1938 by 25 mountain climbers who pooled their buying power to get a better deal on ice axes and other climbing gear. From the start, REI was a consumer cooperative, a retail business that shares some of its profits with members. Today, the Kent, Washington, retailer sells a vast array of outdoor sporting goods and apparel through 80 stores in 27 states, a printed catalog, two websites, and telephone sales. It also operates REI Adventures, a travel service for those who want to paddle, climb, cycle, ski, hike, or enjoy a combination of outdoor activities while on vacation.

1. Why would REI locate many of its stores in freestanding structures rather than in shopping centers?
2. What is the likely effect of REI's consumer cooperative structure on the retailer's ability to build customer relationships?
3. What is REI's retail positioning, and why is it appropriate for the target market?