After two years of closing underperforming stores, Allbirds is shrinking its physical footprint. The company plans to close most of its stores to focus on profitable growth. This marks a shift in strategy from its earlier plans to open hundreds of locations.
CEO Joe Vernachio explained, “This is an important step for Allbirds, as we drive toward profitable growth under our turnaround strategy. By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business.”
Moving away from rapid expansion
Allbirds had originally planned to expand aggressively. The company aimed to open hundreds of stores but reached just over 60 locations globally by 2023. Over the next two years, Allbirds pulled back, closing 14 U.S. stores in fiscal 2024 and nine more in the first half of 2025. The company now plans to close roughly 20 remaining stores, keeping only two outlet stores and two brand-run stores in London. All other international stores transitioned to a distributor model starting in 2023.
At the time of publishing, Allbirds lists over 20 international stores, most of them distributor-run, along with two outlet stores in California and Massachusetts, and one in Atlanta.
The impact on sales
The store closures and shift to a distributor model have affected sales. However, both strategies aim to boost long-term profitability. In its most recent quarter, Allbirds saw a 23% drop in revenue year-over-year. Still, the company’s net loss decreased slightly to $20 million. Vernachio highlighted the success of new products, noting that customer feedback has been positive.
In addition to introducing new product styles, Allbirds has upgraded several of its older models with new features.
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Allbirds’ future outlook
The store closures are part of Allbirds’ strategy to reduce costs and ensure long-term growth. By focusing on profitability instead of expansion, the company hopes to strengthen its business model.
Although the closures have hurt sales, the company is optimistic that its new products will drive future growth. As Allbirds continues adjusting its strategy, its success will depend on how well customers and investors respond to its new approach.
