Key Takeaways:
- REI’s San Diego store voted to unionize, becoming the co-op’s 12th unionized location and largest union store in the country.
- The vote followed REI’s Anniversary Sale, which the company said beat forecast by more than 3% and came in 7% above budget.
- The result adds to an ongoing labor dispute, with no final contract reached at any previously unionized REI store.
Workers at REI’s San Diego store have voted to unionize, becoming the 12th REI location to seek union representation, even as the co-op reported its Anniversary Sale exceeded forecasts despite a nationwide boycott called by the union.
According to REI’s newsroom, the sale exceeded forecast by more than 3% and came in more than 7% above budget, delivering the co-op’s second-strongest margins in nine years. Nearly 20 million members and customers visited stores and REI.com during the event.
The San Diego vote came just days after the boycott concluded. According to the union, the store is REI’s third largest by revenue and is now the largest unionized REI location in the country. Workers voted to be represented by UFCW Local 135.
REI Disappointed in Vote Results
REI acknowledged the outcome but expressed disappointment. “Employees at our San Diego store have voted to be represented by the United Food and Commercial Workers, and we are awaiting certification of the election results by the National Labor Relations Board,” a company spokesperson said. “We’re disappointed in this result but respect our employees’ right to choose or not to choose union representation. We remain confident in what makes REI a great place to work: meaningful work, flexibility, and a shared commitment to our co-op values.”
San Diego workers described the vote as driven by both workplace concerns and a broader dissatisfaction with the co-op’s direction. “Myself and the dozens and dozens of my colleagues who voted to form a workers’ union are doing so out of concern for a store and a company we believed in,” said Juanpablo Contreras, a San Diego REI worker. “We aren’t asking for much: fair pay, health and safety protections, and a return to REI’s values, not just for workers, but members too.”
Jae Michael, another San Diego worker, said the union win reflects a desire to hold leadership accountable. “We are the ones stewarding the values of this co-op every single day, especially when we cannot rely on executive leadership to do the same. With our union, we’ll have a say in the decisions that affect our jobs and our lives.”
San Diego is the third California store to unionize, joining Berkeley and Santa Cruz. The full list of unionized REI locations now includes SoHo, N.Y.; Berkeley, Calif.; Cleveland; Chicago; Boston; Durham, N.C.; Maple Grove, Minn.; Bellingham, Wash.; Castleton, Ind.; Santa Cruz, Calif.; Greensboro, N.C.; and San Diego. NLRB certification of the San Diego results is still pending.
Four Years of Bargaining with No Agreement
The vote adds to an ongoing labor standoff. As SESO has reported, four years of bargaining between REI and the UFCW have not produced a final collective bargaining agreement at any of the 11 previously unionized stores.
The dispute escalated in February when REI declared an impasse and moved to unilaterally implement the terms of its last, best and final offer, including reductions to starting wages for new hires, slower vacation accrual, a shift from guaranteed retirement contributions to a company match model, and sick day alignment to state minimums. The union has disputed the impasse declaration as unlawful.
In May, REI released 2025 financial results showing the co-op continuing to narrow its losses under its Peak 28 strategic plan. 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.
