REI Union Votes to Boycott Anniversary Sale in Response to Benefit Cuts

REI’s Financial Struggles

It’s not clear how much REI will reduce wages for new employees. According to an internal memo obtained by Bloomberg: “Effective July 1, 2026, the salary range will be reduced, which results in a lower starting hourly rate for new employees hired as of that date.”

REI did not immediately respond to GearJunkie requests asking to verify whether the retailer will reduce wages for new employees. Before explaining cuts to benefits, Laughton noted that Summit — an incentive program that increases pay based on performance reviews — would increase to quarterly payments in 2026.

However, Laughton did tell employees that REI’s “financial position remains challenging.”

“We’re still spending more than we bring in and expect continued economic pressure this year,” she wrote. “While we’ve taken significant steps already to manage costs, we’re still on the climb toward a healthy financial position. Getting there will require continued discipline and close attention to our largest expense areas.”

REI has been struggling to improve profitability for years. In January 2025, it shut down REI Experiences, its adventure travel division. The move laid off more than 400 employees, but was necessary because the company was barely breaking even, then-CEO Eric Artz said at the time.

In both 2024 and 2023, REI reported net losses resulting from declining sales. The loss was $156.4 million in 2024 and $311.1 million in 2023, according to REI’s financial reports.

Growing Conflict Between the Union and the Company

REI saw its first store unionize in 2022 — and the movement has been growing ever since. The retailer now has 11 unionized stores that have been in collective bargaining negotiations with company leaders for more than 6 months.

But those negotiations supposedly broke down this spring. The union is accusing company leaders of “broken promises.” That’s why REI Union workers voted to boycott the retailer. The unionized employees also have the support of U.S. Rep. Nikki Budzinski (D-IL), who said she was “proud to stand with REI workers as they fight for fair wages, good working conditions, and respect on the job.”

Some outdoor influencers have also asked supporters to join the boycott.

The union has shown influence in organizing efforts. In May 2025, an REI Co-op election for its board of directors ended without any seats filled. Despite REI’s nominating and governance committee approving three candidates put forth by co-op leadership (two incumbents and one new director) and leaving two union-backed candidates off the ballot, none of REI’s nominees received enough votes to win election to the board.

Regardless, REI slammed the union’s efforts to boycott its Anniversary Sale, which “the vast majority of our employees take pride in supporting,” REI’s spokesperson said. The retailer said that company leaders “strongly disagree with the union’s characterization of recent events.”

“REI believes that real progress comes from focused negotiations at the table and remains ready to continue bargaining in good faith,” the spokesperson said. “We’re waiting on the UFCW to make any counterproposal that might restart talks, given the current impasse that was reached after REI made a last, best, and final offer in January.”