Union Wave Hits San Diego: REI's Largest Store Votes to Organize as Anniversary Sale Beats Forecasts

In a major development for the outdoor retail sector, workers at REI’s San Diego location have voted to unionize, making it the specialty outdoor co-op's 12th unionized storefront and its largest unionized location in the United States.

The landmark election results arrive alongside a conflicting financial update from corporate headquarters: REI's hallmark Anniversary Sale heavily outperformed internal expectations, seemingly blunting the impact of a high-profile, union-led nationwide boycott.

Record-Breaking Sale Defies Boycott

The union victory in Southern California was finalized just days after the conclusion of a highly publicized national boycott orchestrated by organizers. Despite the targeted labor pushback, shoppers turned out in droves.

According to official figures released by the co-op's newsroom, the Anniversary Sale exceeded internal forecasts by more than 3% and finished a staggering 7% above budget. The shopping event drew nearly 20 million members and customers to brick-and-mortar storefronts and REI.com, delivering the retail giant's second-strongest profit margins in nine years.

Workers Demand Accountability

In San Diego—a location that ranks as REI's third-largest store by revenue nationwide—employees voted to be represented by the United Food and Commercial Workers (UFCW) Local 135. Staff members noted that the drive was fueled by a growing disconnect between corporate leadership and the cooperative's foundational principles.

"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 San Diego REI employee Juanpablo Contreras. "We aren’t asking for much: fair pay, health and safety protections, and a return to REI’s values."

REI management expressed disappointment regarding the outcome while confirming they are currently awaiting official certification of the vote from the National Labor Relations Board (NLRB).

"We respect our employees’ right to choose or not to choose union representation," a company spokesperson stated. "We remain confident in what makes REI a great place to work: meaningful work, flexibility, and a shared commitment to our co-op values."

A Growing Footprint and a Four-Year Standoff

San Diego marks the third California storefront to successfully organize, joining locations in Berkeley and Santa Cruz.

Unionized REI Store Locations

• California: Berkeley, Santa Cruz, San Diego

• North Carolina: Durham, Greensboro

• Midwest: Chicago (IL), Cleveland (OH), Maple Grove (MN), Castleton (IN)

• East Coast & Pacific Northwest: SoHo (NY), Boston (MA), Bellingham (WA)

The expansion of the union footprint adds further fuel to a long-running labor gridlock. Despite four years of active bargaining sessions between REI executives and the UFCW, not a single collective bargaining agreement has been finalized or signed at any of the 11 previously organized stores.

The dispute hit a boiling point in February when REI declared an impasse and unilaterally instituted its "last, best and final offer." The implemented terms cut starting wages for new hires, slowed down vacation accrual rates, and replaced guaranteed retirement contributions with a company-matching model—a package the union continues to challenge as unlawful.

Financial Turnaround Continues

The labor tension contrasts sharply with REI's ongoing fiscal recovery under its "Peak 28" strategic plan. Recently released financial results show that the co-op boosted its net sales to $3.54 billion, effectively narrowing its net annual losses to $54.3 million—a massive leap forward from the $156.4 million loss reported in 2024 and the $311 million loss suffered in 2023.

Furthermore, gross profits rose 7% year-over-year to $1.52 billion, bolstered by the addition of one million new co-op members to bring their global membership base to 26 million.