US footwear retailer Allbirds plans to close all its remaining full-price shops in the US by the end of next month.
According to the company, the closure is part of its effort to streamline operations and focus on lower-cost growth channels.
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The company said it will retain two outlet locations in the US and continue running two full-price stores in London, UK.
The shift is designed to free up resources for its online business, wholesale relationships and overseas distributors, which it views as offering wider reach, greater flexibility and improved operating leverage.
Founded in 2015, Allbirds makes shoes using materials such as Merino wool, tree fibre and sugarcane.
The store exits are expected to be capital-light, with management planning to detail projected selling, general and administrative cost savings, along with associated cash charges, during its fourth-quarter and full-year 2025 earnings call scheduled for March 2026.
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By GlobalDataAllbirds CEO Joe Vernachio said: “This is an important step for Allbirds, as we drive toward profitable growth under our turnaround strategy. 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.”
According to CNBC, the company reported in November that third-quarter net revenue dropped 23.3% year on year, largely reflecting changes to its international distributor network and the closure of physical shops.
Sales from US stores were down by 20% from the prior year.
Allbirds currently has a market capitalisation of $32m, with its share price having fallen more than 80% over the past two years. The sustainable footwear group was listed on public markets in 2021.
