Earlier quoted context omitted.
How is it virtue signaling? They can either ship their products from one warehouse to their stores, then you drive and pick up your item. Or they can just ship it directly to you which presumably means the item travelled the same distance? Unless you live walking distance from REI?
I think the idea is that you can't buy a bag to take your purchases home, but the store will gladly use a box to ship them if you shop online.
Virtue signaling example: x bags received and delivered directly to landfill instead of to customer at checkout, y boxes online, x + y = z
Apparent reality: 0 bags received, y boxes online, 0 + y = y
If y is significantly less than z, we are forced to discard the claim of virtue signaling given that a measurable reduction in overall waste is a measurable reduction in overall waste.