REI Store Closures in New York and Boston Raise Concerns Among Unionized Employees

What's Happening?

REI has announced the closure of three stores, including its flagship location in New York's SoHo district, as well as stores in Boston and Paramus, NJ, set for 2026. This decision is part of a strategic plan outlined by CEO Mary Beth Laughton, aimed at improving the company's health and aligning with its 'Peak 28: Ascending Together' goals. The closures have raised concerns among unionized employees, particularly in New York and Boston, who were blindsided by the news. The union representing these workers is seeking more information to understand the decision and hopes to secure the best possible outcome for affected employees.

Why It's Important?

The store closures could significantly impact REI's relationship with its employees, especially those in unionized locations. This move comes at a time when REI is attempting to repair strained relations with its workforce, following previous controversies and financial challenges. The closures may jeopardize recent progress made in contract negotiations with unionized stores, potentially leading to renewed tensions. For REI, maintaining a positive relationship with its employees is crucial for operational stability and brand reputation, particularly as it competes with other major retailers in the outdoor gear market.

What's Next?

The union representing REI employees in New York and Boston is expected to engage in discussions with the company to understand the rationale behind the store closures and explore options for affected workers. These discussions could lead to negotiations aimed at mitigating the impact on employees, such as severance packages or relocation opportunities. Additionally, REI's strategic plan may involve further changes to its operations and customer loyalty programs, as the company seeks to strengthen its market position and financial health.