Allbirds to Shut Down Retail Locations in the US and Focus on Online Sales

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Allbirds to Conclude Full-Price Retail Operations in the U.S. by February

Renowned global lifestyle footwear brand Allbirds has announced its decision to shutter the remaining full-price retail locations in the United States by the close of February.

In a press release issued on Wednesday, January 28, the company stated that it would strategically redirect its focus towards enhancing its eCommerce capabilities, expanding wholesale partnerships, and fostering international distribution channels.

Despite this contraction in full-price retail, Allbirds will maintain two outlet stores in the U.S. and will continue operations at two full-price locations in London.

This initiative is pivotal for Allbirds as we pursue profitable growth under our turnaround strategy,” remarked CEO Joe Vernachio. “Over the past two years, we have proactively reduced our brick-and-mortar footprint.

By exiting these unprofitable locations, we are implementing measures to lower costs and bolster the long-term viability of our enterprise.

As of September 2025, Allbirds operated 29 U.S. stores and two international outlets, a notable decrease from 45 and 15 stores, respectively, in September 2023. This data was highlighted in a November 2025 earnings report.

The company has cultivated a devoted clientele with its footwear, crafted from merino wool, which renders the shoes both softer and more sustainable compared to conventional sneaker materials, as reported by PYMNTS in September 2017.

Established in 2015, Allbirds unveiled its inaugural product in 2016. Initially gaining traction through direct eCommerce sales, the brand opened its first physical store in San Francisco, situated on the ground floor of its headquarters, and subsequently expanded its retail presence.

In 2018, Allbirds launched a flagship store spanning 4,800 square feet in the vibrant SoHo district of New York City, and in 2019, the company projected having 15 brick-and-mortar locations established by the end of that year, with an additional 20 planned for the following year.

As noted by PYMNTS in 2019, Allbirds was not alone in its shift towards physical retail; however, its assertive expansion into brick-and-mortar locations both domestically and internationally signified a transition from a cherished niche brand to a formidable entity within a highly competitive global marketplace.

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Looking ahead, Allbirds has indicated plans to close between 10 and 15 U.S. retail outlets by March 2024. PYMNTS reported at that time that the company had encountered a 14.5% decline in net revenue year-over-year during the most recent fiscal quarter.

Source link: Pymnts.com.

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