US footwear retailer Allbirds Inc. plans to close all of its remaining regular stores in the US by the end of February 2026. This decision marks a clear shift in its retail strategy, the company said on Wednesday. Allbirds is now focusing on a “leaner and more capital efficient business model”.
The store closures would allow resources to be redirected, it said in a statement. The focus is now on the e-commerce platform, wholesale partnerships and international sales structures. According to the company, these channels offer greater reach and better operational leverage compared to the existing brick-and-mortar portfolio.
The now announced step is “crucial to the company’s ongoing turnaround strategy,” emphasized CEO Joe Vernachio in a statement. “We have intentionally reduced our brick-and-mortar portfolio over the past two years. By exiting these remaining unprofitable locations, we are taking steps to reduce costs and support the long-term health of the company.”
Allbirds relies on online business, wholesale and international sales partnerships
With the restructuring, the shoe supplier is reacting to the current financial pressure. In the third quarter of the current fiscal year, which ended on September 30, 2025, Allbirds suffered a 23.3 percent decline in sales to 33 million US dollars (28 million euros). The company attributed the significant losses to ongoing structural changes, such as branch closures and the transition to partner-based sales models in international markets.
Allbirds will maintain a minimal physical presence in the US and will continue to operate two outlet stores. Internationally, the brand will keep its two regular stores open in London to continue to offer customers “touch points” with the brand.
The transition from our own retail to a wholesale model is already underway. Allbirds plans to expand its footprint to 150 specialty stores by spring. The company relies on sales partnerships to reach customers but save the costs of long-term rental contracts and personnel. Management plans to announce details of further cost-cutting measures when presenting its annual results in March.
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