Allbirds becomes latest retailer to close brick-and-mortar stores in shift to online focus

Core Viewpoint - Allbirds is shifting its focus from physical retail to online sales to enhance profitability, closing its remaining full-price stores in the U.S. by the end of February [1][2]. Group 1: Company Strategy - The CEO of Allbirds stated that the closure of unprofitable stores is a crucial step towards achieving profitable growth under a turnaround strategy [2]. - The company has been reducing its brick-and-mortar presence over the past two years to cut costs and support long-term business health [2]. - Allbirds will maintain two outlet stores in the U.S. and two full-price stores in London, indicating a strategic pivot rather than a complete exit from physical retail [2]. Group 2: Market Context - Allbirds originated in Silicon Valley and gained traction during the direct-to-consumer boom, going public in 2021 [3]. - The rise in rents and the declining appeal of physical retail have prompted Allbirds and other direct-to-consumer companies to prioritize digital sales [4]. Group 3: Financial Performance - In its third-quarter earnings report, Allbirds reported a 23.3% decline in net revenue compared to the same period the previous year, largely due to changes in international distribution and store closures [5]. - Net revenue from U.S. stores decreased by approximately 20% year-over-year [5]. - The company has a market cap of $32 million but has experienced a stock decline of over 80% in the past two years [5].