Footwear brand Allbirds is shuttering all of its full-price stores across the United States by the end of February. The company, which once boasted over 60 locations, is shifting its focus to e-commerce, wholesale partnerships, and international distribution. This strategic pivot aims to streamline operations and enhance profitability, a common challenge for digital-native brands expanding into physical retail.

This decision reflects broader struggles among digital-first brands to find the right balance between online and brick-and-mortar sales. Maintaining physical stores can be costly, impacting profits compared to online-only models. Allbirds aims to reduce costs and support the long-term health of the business by exiting unprofitable stores. The move follows similar actions from other brands.

Allbirds' move signals a broader trend in retail, with several digital-native brands reevaluating their physical store footprint. Brands like Parachute Home and Amazon have also closed stores. The shift highlights the inherent challenges of managing both online and offline retail channels, especially in a competitive market.

Ultimately, this is a strategic move to boost overall profitability. Focusing on e-commerce and wholesale channels offers greater reach and flexibility, according to the company. The brand hopes to cut costs while improving the overall health of the business. The company will discuss anticipated savings and related cash charges on its Q4/full year 2025 earnings conference call in March 2026.