Key Takeaways:
- The boycott targets REI’s biggest sales event, running May 15–25.
- The union says four years of bargaining have failed to produce a contract.
- REI says it remains committed to negotiating in good faith.
Workers and allies of the REI union say they will show up outside REI stores beginning Friday, urging customers to skip the outdoor co-op’s Anniversary Sale as a nationwide boycott runs May 15-25.
The dispute centers on four years of contract negotiations that have yet to produce a final collective bargaining agreement at any of REI’s 11 unionized stores. Both sides claim the other has bargained in bad faith.
Editor’s Note: REI responded to the union’s latest claims on May 15, and the response has been added to the story.
New Claims from REI Union
The REI Union, backed by the United Food and Commercial Workers (UFCW) and the Retail, Wholesale and Department Store Union (RWDSU), announced the boycott on May 4. The union says 70,000 REI co-op members have already pledged to sit out the sale.
New details released today by the UFCW make claims about what happened during the most recent round of bargaining in Chicago, which ended April 30. According to the union, REI failed to submit a proposal until the final day of negotiations and did not send its vice president of labor relations or any key decision-maker to the table.
The union says REI’s proposals on that final day included a moratorium prohibiting the REI Union from supporting organizing efforts at other REI stores for the duration of the contract, a non-disparagement agreement that would prevent workers from speaking publicly about working conditions, a mandatory $1 million annual donation from the union to a charitable organization of REI’s choosing, and a six-year contract term, double the length previously discussed.
“My co-workers and I have spent the last four years showing up at the bargaining table for a fair contract, while REI has spent that time attempting to defeat us at every turn,” said Alex Pollitt, a worker at REI’s Bellingham, Wash., store and bargaining committee member, in the UFCW statement. “We’re calling for a nationwide boycott of REI’s Anniversary Sale because REI still refuses to take negotiations seriously and has left us with no other way to make our voices heard.”
Pollitt added: “Our singular goal for the past four years has been to negotiate in good faith with REI and agree on a contract that upholds the values and legacy of this co-op. We have continued to reach out after bargaining ended last month.”
REI’s Position
REI CEO Mary Beth Laughton. Photo courtesy of REI.
REI published a new response to the union’s latest claims on May 15.
REI said the dispute involves a limited share of its business, noting that 11 of its 195 stores have chosen union representation. The company added it has remained in bargaining with the union since 2022 as the sides work toward first contracts at those 11 locations.
In its response to union criticism, REI denies that it walked away from negotiations or bargained in bad faith, and said it continues to negotiate under a national framework meant to support progress across multiple stores. The retailer also said that some union claims about proposals raised at the bargaining table, including issues tied to public criticism and charitable donations, have been taken out of context and did not reflect final agreed terms.
REI further said it lawfully implemented some economic terms from its last, best, and final offer after the parties reached impasse, and maintains those steps complied with federal labor law. More broadly, the company says it respects workers’ right to organize, continues to offer strong pay and benefits, and rejects claims that it is undermining employees’ rights or access to healthcare.
REI also said any use of AI would be handled responsibly and not as a replacement for store employees, while defending its governance by arguing that the co-op remains centered on its more than 26 million members and guided by member input.
See REI’s full statement issued May 15 here.
Four Years at the Table
The boycott is the latest escalation in a dispute that dates to 2022, when REI’s SoHo, N.Y., store became the first to unionize. Ten more stores have since followed, with locations in Berkeley, Calif.; Cleveland; Chicago; Boston; Durham, N.C.; Maple Grove, Minn.; Bellingham, Wash.; Castleton, Ind.; Santa Cruz, Calif.; and Greensboro, N.C. A 12th store, in San Diego, has filed for a union election with a vote scheduled for May 27-28, per the UFCW.
Despite reaching 25 tentative agreements over months of negotiations, none of the 11 stores has secured a final collective bargaining agreement, as SESO previously reported.
The situation deteriorated in late February when REI’s attorney notified the UFCW that the two sides were at an impasse. The company then announced it would unilaterally implement the terms of its final contract offer, including cuts to pay and benefits that had been a central sticking point in negotiations.
Those cuts, reported by SESO in March, include a reduction in starting wages for new hires effective July 1, 2026, a slower accrual of vacation time, a shift from guaranteed retirement contributions to a company match model, and a realignment of sick days to state-by-state legal minimums. CEO Mary Beth Laughton informed staff of the changes in a February memo, citing ongoing financial pressure.
“We’re still spending more than we bring in and expect continued economic pressure this year,” Laughton said in the memo. “While we’ve taken significant steps already to manage costs, we’re still on the climb toward a healthy financial position.”
The union disputed REI’s impasse declaration as illegal, with UFCW representative Matthew Horn saying no impasse existed and that unilaterally imposing terms violated labor law.
REI Turnaround Backdrop
The labor dispute is playing out as REI works to turnaround its financial results. As SESO reported, the co-op improved its bottom line by $102 million in 2025 under the Peak 28 strategy. Net sales reached $3.54 billion, a slight increase over 2024, while the net loss narrowed to $54.3 million from $156.4 million in 2024 and $311 million in 2023. Gross profit rose 7% year-over-year to $1.52 billion, and the co-op delivered two profitable quarters to close out the year. REI also added one million new members in 2025, bringing total membership to 26 million.
“This past year showed what’s possible when we stay grounded in our Peak 28 strategy and true to who we are,” Laughton said in a statement. “We’re seeing clear signs that our plan is working, strengthening the business now and shaping a stronger future for the co-op.”
To execute the turnaround, Laughton has assembled a new executive team with deep roots in retail and digital commerce, including chief commercial officer Kim Waldmann, who joined in 2026 from Foot Locker, and chief merchandising officer Kristin Shane, hired in 2025.
REI’s financial trend since 2019 shows both the highs and lows from the COVID-19 pandemic. Source: REI Financial news. Data verified by Shop Eat Surf Outdoor; visualized using AI.
REI Anniversary Sale – Largest Revenue Event of the Year
The Anniversary Sale runs May 15-25 and features 25% off REI Co-op brand gear and up to 25% off outside brands, per the company’s newsroom. It is REI’s largest revenue event of the year and the moment the union has chosen to apply maximum pressure.
REI has roughly 200 stores nationwide. The 11 unionized locations represent a small fraction of that total, but the boycott’s consumer component, with 70,000 co-op members allegedly pledged to participate, extends its potential reach well beyond those individual stores.
