Recreational Equipment, Inc. (REI) focuses on growth in a niche retail market of outdoor goods. REI is a cooperative, owned by 1.4 million members and founded 60 years ago to provide technical goods for hikers and mountain climbers. Now it has diversified to rugged outdoor apparel which is in vogue for simple urban outings. With 51 stores throughout the U.S. and plans for a new outlet in Japan, REI projects a 12 percent annual increase in sales this year to $575 million. From the Series:Entrepreneurs and Innovators