Retailer REI Experiences a Financial Deficit Despite Record Sales in 2022
In a historic move, outdoor retail giant REI has reached an agreement with the United Food and Commercial Workers (UFCW) and the Retail, Wholesale and Department Store Union (RWDSU) on August 1, 2025. This agreement establishes a national bargaining structure to guide collective bargaining agreements at the store level for the 11 unionized REI stores across the United States.
The 11 unionized stores are located in diverse regions, including SoHo, NY; Berkeley, CA; Cleveland, OH; Chicago, IL; Boston, MA; Durham, NC; Maple Grove, MN; Bellingham, WA; Castleton, IN; Santa Cruz, CA; and Greensboro, NC.
The agreement comes after a contentious period, during which REI's stance on unions was seen as "not necessary or beneficial" for its employees. Unionized workers were also excluded from company-wide raises issued from 2022 to 2024, leading to union complaints and NLRB filings. The recent agreement to negotiate contracts and restore the withheld raises marks a significant step forward.
As part of the agreement, REI has agreed to provide wage increases and bonuses for the years 2022-2024, which had previously been withheld. This decision has led to the dropping of Unfair Labor Practice (ULP) charges filed with the National Labor Relations Board (NLRB).
The groundwork has been laid for REI and the unions to continue good faith bargaining towards first contracts. This move signals a shift in REI's approach towards its employees and unions, and it is hoped that this will lead to a more harmonious and productive working environment.
In other developments, REI has sought to maintain momentum by beefing up its membership benefits for the first time in its 84-year history. The company added 1.3 million members in 2022, bringing its total count to 23 million. REI's membership benefits include exclusive gear collections, free shipping, the ability to buy and trade in used gear, discounts on shop services and rentals, access to member sales, and an ability to earn money back from its annual Co-op Member Reward.
REI's CEO, Eric Artz, stated that the company is focused on a path back to sustainable profitability. Despite a $164.7 million loss in 2022, REI reached a record $3.9 billion in sales last year. The company has also increased its BIPOC employee representation to 25.9% last year, and 78% of BIPOC employees report feeling a sense of belonging at REI.
REI's efforts to improve its relationship with its employees and unions, coupled with its focus on sustainability and inclusivity, position the company well for the future. As the outdoor retail market continues to evolve, REI's commitment to its employees, members, and the environment will be key to its success.
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