SEATTLE (BRAIN) — REI Co-op announced Monday that net sales for 2025 increased slightly year-over-year, the same day the union representing 11 stores said its workers voted to boycott the chain's biggest sale of the year that begins May 15 after contract negotiations ended last week.
Net sales were listed at $3.54 billion, compared with $3.53 billion in 2024. Net income loss improved by $102 million, from $156,439 to $54,284.
"This past year showed what's possible when we stay grounded in our Peak 28 strategy and true to who we are," said Mary Beth Laughton, REI Co‑op president and CEO about the company's three-year strategic plan. "We're seeing clear signs that our plan is working, strengthening the business now and shaping a stronger future for the co-op. Alongside that progress, employees and members continue to live our values by showing up for public lands and protecting access to the outdoors for generations to come."
Through co-op member rewards, $203 million was distributed, and $121.9 million invested in employee incentives and profit sharing, a 44% increase from 2024. One million members were added, bringing the total to more than 26 million.
The Peak 28 plan was announced in September by Laughton, who said the company will have to make difficult decisions to grow sales and build customer trust. Laughton succeeded Eric Artz last year after leading Nike's global retail and digital D2C operations.
In March, REI announced in an email to employees that it will reduce starting pay for employees at retail stores, distribution centers, and its headquarters beginning July 1 and reduce benefits for all current employees. The pay cut percentage was not disclosed.
According to the union — represented by the United Food and Commercial Workers and the Retail, Wholesale and Department Store Union — REI workers are backed by 70,000 co-op members who pledged not to shop during the Anniversary Sale that ends on Memorial Day.
"Following four years of REI's unrelenting union-busting campaign, workers at the 11 unionized REI stores are taking this critical step. ...." the union said in a news release Monday.
The union said REI is bargaining in bad faith.
"Co-op members have stood by the REI Union every step of the way, and this boycott is no different," said Alex Pollitt, a REI worker at the Bellingham, Washington, store. "We already have tremendous support from the public, and we are going to make it loud and clear that we will not back down. We will continue to fight for the wages, benefits, and working conditions we have earned. Boycott REI!"
During negotiations in Chicago, the union said REI demanded contract provisions that would prevent more workers from unionizing and stop workers from speaking out publicly against the company through non-disparagement agreements. The union added this came after REI proposed wage proposals that would pay workers at unionized stores less than workers at non-union REI stores during bargaining in late February.
REI maintains it is bargaining in good faith. "This is a disappointing move that targets the co‑op," REI said in a news release issued Saturday. "It seems the union's focus is on harming the financial well-being of the business, instead of advancing negotiations. The union's dedication to undermining the business puts jobs, wages, benefits, and future opportunity at risk, and pulls everyone further from the progress our employees deserve.
"REI remains ready to negotiate in good faith at the bargaining table — not on social media and not in response to public attacks or pressure campaigns. Every day spent escalating a public conflict is a day not spent at the bargaining table working to reach an agreement that supports our employees and protects the long‑term health of the co‑op. We're ready to continue bargaining when the union is willing to return to the bargaining table, as they have said they have no current interest in continuing to meet."
Since 2022, stores that have voted to unionize are SoHo, New York; Berkeley, California; Cleveland; Chicago; Boston; Durham, North Carolina; Maple Grove, Minnesota; Bellingham, Washington; Castleton, Indiana; Santa Cruz, California; and Greensboro, North Carolina. The San Diego store recently announced it filed to unionize.
Last fall, and a week after announcing a strategic plan to employees that would involve difficult decisions to grow sales, REI said it would close three stores in 2026, including the SoHo and Boston location later in the year. Its Paramus, New Jersey, store closed earlier this year.
