Allbirds announced on Wednesday that it will close all of its full-price retail stores in the United States, pivoting its strategic focus to e-commerce operations in a bid to enhance profitability. The company will continue to operate its two outlet stores in the U.S. and its two full-price stores in London. Allbirds joins a growing list of companies prioritizing native digital operations over physical retail.

On Tuesday, February 16, 2021, a woman walks past an Allbirds store in the Georgetown neighborhood of Washington, D.C. Footwear brand Allbirds announced on Wednesday a strategic shift from physical retail to online retail to improve profitability, becoming the latest retailer to adopt this approach. The company stated in an announcement that it will close all remaining full-price stores in the United States by the end of February, reallocating resources to e-commerce and wholesale partnership businesses. CEO Joey Zwillinger said in a statement, "This is a pivotal step for Allbirds as we work to achieve profitable growth under our transformation strategy. For the past two years, we have been strategically reducing our physical footprint; closing these persistently loss-making stores is an action we are taking to cut costs and ensure the company's long-term, stable development." Allbirds indicated that it will continue to operate its two outlet stores in the U.S. and its two full-price stores in London. The sustainably-focused shoe company originated in Silicon Valley, rapidly expanded during the direct-to-consumer boom, and completed its initial public offering in 2021. Previously, Allbirds was among many DTC brands that attempted to build a customer base through physical retail, hoping that opening stores would improve their financial health. Now, with rising rents and the fading appeal of brick-and-mortar retail, the importance of native digital operations has become increasingly prominent, prompting Allbirds and a host of other DTC brands to recalibrate their strategic focus. The sneaker company had previously announced a phased closure of its physical stores across the United States. The company's third-quarter financial report released last November revealed a significant 23.3% year-over-year decline in net revenue, primarily attributed to adjustments with international distributors and the impact of store closures; within that, net revenue from U.S. physical stores fell by approximately 20% compared to the same period last year. Allbirds currently has a market capitalization of $32 million, and its stock price has plummeted more than 80% over the past two years.