REI chief exec Wally Smith retiring from outdoor retailer

REI President and Chief Executive Wally Smith will retire early after 35 years with the outdoor retailer, company officials announced today.

The company's executive committee found out about the decision last week, and the board was informed yesterday.

Board member Thomas Harville, retired chairman and chief executive of The Bon Marche, said Smith's decision surprised but didn't shock him.

"These are very rapidly changing times, with Internet retailing representing opportunities and challenges," Harville said. "I think Wally realized it was time for some new leadership to push the company forward. . . ."

Smith has worked as a team for several years with Chief Operating Officer Dennis Madsen, Harville said, and believes the company is in capable hands with Madsen.

REI directors said they are beginning a search for Smith's replacement.

Spokesman Michael Collins said the company had been aware of Smith's restlessness.

"It was something Wally looked at over the last couple of months and made a decision on in the last week," Collins said. "It was my belief he had really felt like he made his contribution to REI and was ready for some new challenges."

Smith, 53, will officially leave the company when he returns from a business trip in mid-February. He was unavailable for comment.

Smith joined REI in 1965 and served in management positions until reaching the top spot in 1983. During Smith's tenure as CEO, the company grew from nine stores in six states to 54 stores in 23 states plus three online retail sites, an international division and an adventure-travel company.

Under Smith, sales also increased from $79 million to nearly $621 million in 1999, up 5.7 percent from 1998's sales of $587 million.

Collins said Smith is considering what his next move will be.