A retail chain that doesn't keep up with Internet retailing will soon be history. Sure, stores still account for the lion's share of the business, but much of the chains' new competition now comes from online retailers. And new ways of doing business on the web are continually transforming customers' expectations of what chain stores should do to keep pace. As a result, retail chains face the daunting task of balancing web development with store investments and learning how to leverage each in the other channel. One of the earliest chains to recognize that the Internet is turning retailing into something it had not been before is REI. The sporting goods co-op retailer was among the first to understand the value of ordering merchandise online and picking it up at the store. It was also an early adopter of web-based kiosks in its stores, which not only helped save the sale when an item was out of stock at the store, but also raised the knowledge base of store associates by putting a near-infinite amount of data at their fingertips. In addition, the chain was among the first to migrate popular store features, such as customers' accounts of their outdoor adventures and store staffers' educational expertise, to the Internet. Brad Brown, vice president of e-commerce and web strategy, will discuss where REI sees the Internet leading it in the future and what it will take to keep up with this fast-changing technology.