Allbirds announced plans to close its remaining full-price stores across the United States. The company plans to complete the closures by February 2026 as part of its strategy to streamline operations and increase profitability.
Allbirds Plans to Streamline Operations With U.S. Store Closures
Founded in 2015, Allbirds is a San Francisco–based footwear brand known for its sustainability-focused design. The brand is well-known for its iconic Wool Runner; the company uses natural materials like Merino wool, tree fiber, and sugarcane to create comfortable, innovative shoes.
Recently, the company announced plans to close all its remaining full-price stores in the United States by the end of February 2026. According to the official announcement, this move is part of the company’s broader effort to simplify operations and improve profitability.
The company emphasized that the closure decision will allow it to focus its resources on e-commerce business, international distributorships, and wholesale partnerships. Allbirds believes these are more scalable and cost-efficient channels to work on.
The move marks a further pullback from brick-and-mortar retail as Allbirds continues to execute a turnaround strategy focused on reducing costs and strengthening its balance sheet.
Insights From the Top Management
Chief Executive Officer Joe Vernachio said the closures follow a multi-year effort to shrink the company’s physical retail footprint. “By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business,” Vernachio said in a statement.
Allbirds said the U.S. store closures are expected to be a capital-light initiative. The company plans to provide additional details on anticipated selling, general, and administrative (SG&A) expense savings, as well as any related cash charges, during its fourth-quarter and full-year 2025 earnings call, expected in March 2026.
Despite the exit from most physical retail in the U.S., Allbirds will maintain a limited brick-and-mortar presence. The company will continue to operate two outlet stores in the United States and two full-price stores in London, which it described as important brand touchpoints.
Allbirds is shifting its focus toward digital sales, wholesale distribution, and international partners. With this, the company aims to improve operating leverage and expand its reach without the overhead associated with company-owned stores.
