Core Insights - Digital-native retailers are facing challenges in balancing online sales with physical store presence, as brick-and-mortar locations can enhance customer experience and drive online sales [1][5] - Maintaining profitability while operating physical stores is difficult, as they incur costs that can detract from the advantages of being a digital-only business [2] - Allbirds, a digital-first shoe company, is significantly reducing its physical store footprint in pursuit of profitability, closing most of its locations [3][7] Industry Trends - Many digital-native brands are reassessing their physical retail strategies, with some closing stores to refocus on e-commerce and partnerships with established retailers [8] - The trend of digital-native brands closing physical stores is not isolated, as companies like Parachute Home and Amazon are also scaling back their brick-and-mortar operations due to unprofitability [8] - A report indicates that several digital-native brands with physical stores, such as Sleep Number and Peloton, may face bankruptcy, highlighting the financial pressures in the current retail environment [6]