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Rock Street, San Francisco

1. The state of the economy can affect the stability of REI and most other companies in either a very profitable or very detrimental way. If the economy is on a high note meaning that job security and wages are at an increased state, then the consumer will be more willing to purchase the products that are offered by REI due to having more disposable income. The alternative however affects Rei in a very detrimental way because if the economy is suffering then individuals will be less likely to spend money on unnecessary goods and services.

2. The state of the economy will affect REI in another way as it relates to inflation in the cost of essential goods. Food, necessary clothing and shelter costs if driven up by economic forces will certainly create a negative effect on REI selling their non-essential products because society as a whole still practices financial priority placement.

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