REI Awarded Exclusive Holiday Sales of MSR Lightning Ascent Snowshoes

MSR Corp. has entered into an agreement with outdoor gear retailer Recreational Equipment, Inc. (REI) allowing the retailer to be the exclusive provider of MSR Snowshoes' much anticipated men's and women's Lightning Ascent snowshoes, new for the 2004-2005 season.

The agreement reportedly stipulates that REI will be awarded the opportunity to be the exclusive retailer offering the MSR Lightning Ascents until Dec. 15th, after which, all other MSR dealers will then be allowed to sell the snow shoes.

The snowshoe industry is regarding the MSR-REI deal with controversy and will be closely watched by outdoor gear analysts. Sources suggest the move has soured many snowshoe retailer forecasts, as the holiday season traditionally accounts for a majority of retail sales of snowshoes. Retailers have further rebuffed the nature of the exclusive agreement, as pre-season orders were apparently placed without MSR Snowshoes disclosing it's exclusive agreement with REI beforehand. As a result, many retailers will be saddled with an overstock of MSR Lightning Ascent snow shoes as the season draws to a close.

One retailer remarked, "If I were a consumer considering purchasing these snow shoes, I'd wait until later in the season, as there will most certainly be a market glut, with resulting discounts, as retailers try and recover there substantial losses from MSR restricting everyone else's holiday sales while REI is given the exclusive sales rights. This is definitely new in the snowsports outdoor gear industry and deals like this are placing an even larger burden on smaller retailers. I can't help but think it's the type of deal Wal-Mart works out with its vendors on a regular basis. In this case where REI is Wal-Mart and MSR Corp is the vendor. Many more deals like this and I'll be dropping MSR Snowshoes without a doubt."