Dive Brief:
- The REI Union is calling for a boycott of the retailer’s anniversary sale, which takes place May 15 through May 25.
- The decision came after contract negotiations ended “without a fair contract offer,” the union said in an emailed press release Friday.
- In a statement released Saturday, REI called it a “disappointing move” and accused the union of focusing on “on harming the financial wellbeing of the business, instead of advancing negotiations.” On Monday, the retailer reported flat sales and narrower losses for 2025.
Dive Insight:
REI inched toward profitability in 2025, thanks in part to the turnaround efforts announced in September. The co-op now has more than 26 million members, after adding one million last year.
Net sales for the year were essentially flat, reaching just over $3.5 billion, and net loss shrank by 65% to $54.3 million. In a statement, CEO Mary Beth Laughton, touting the company’s environmental advocacy, said that within the results are “clear signs that our plan is working, strengthening the business now and shaping a stronger future for the co-op.”
“This past year showed what’s possible when we stay grounded in our Peak 28 [turnaround] strategy and true to who we are,” she also said.
The co-op’s dedication to its values has been questioned in recent years, however. Some co-op members, employees and outside observers have criticized REI’s stance toward employees, especially those who have formed or joined unions. On Monday, the company said it invested $122 million in profit-sharing and employee incentives in 2025, up 44% year on year. But the union accused the retailer of proposing a plan to pay workers at unionized stores less than those at non-union stores.
Most recently, the retailer has worked to prevent REI workers from unionizing or even publicly speaking out against the company, the union said. A boycott of the anniversary sale is the only way to get the retailer to hear worker demands, according to a statement from Jeff Rosemeyer, who works at the REI location in Castleton, Indiana.
REI workers at the company’s 11 unionized stores are represented by various locals of the United Food and Commercial Workers and the Retail, Wholesale and Department Store Union. The store in San Diego has also filed to hold a union election.
In its statement, the retailer said it “remains ready to negotiate in good faith at the bargaining table.”
