Allbirds to Close All Full-Price US Stores

Sustainable footwear brand Allbirds announced Wednesday it would be shuttering all full-price U.S. stores by the end of February in an effort to focus more on e-commerce and partnerships as part of its multiyear turnaround strategy. It will keep its two U.S. outlet stores and its two full-price London stores open.

San Francisco-based Allbirds said in a press release the store closures would enable it to dedicate resources to its e-commerce platform, wholesale partnerships and international distributorships.

“This is an important step for Allbirds as we drive toward profitable growth under our turnaround strategy,” said CEO Joe Vernachio. “We have been opportunistically reducing our brick-and-mortar portfolio over the past two years. By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business.”

Total Retail's Take: The shift back to e-commerce and toward wholesale is part of a five-year turnaround plan Allbirds revealed in 2025 after revenue declined 25 percent year-over-year. The company identified several challenges it was facing, including scaling limitations, high cost structures, and declining demand.

Other initiatives in the turnaround strategy include revamping the product lineup to focus on core franchises; reducing the number of SKUs; enhancing forecasting capabilities; expanding into omnichannel retail; and revitalizing the brand's identity to move away from a focus solely on sustainable footwear and toward more comfort, performance, and verified low-carbon credentials.