Allbirds to close last San Francisco store amid broader retail exit

The once-hot footwear brand is shuttering all remaining U.S. stores by the end of February as part of a turnaround strategy.

Jan. 28, 2026 at 1:47pm by Ben Kaplan

Got story updates? Submit your updates here. ›

Allbirds, the San Francisco-based footwear company once valued at $1.4 billion, is closing its last remaining store in the city as part of a broader retreat from brick-and-mortar retail in the United States. The company will shutter all of its U.S. stores by the end of February, leaving just two outlet locations nationwide and two retail stores in London.

Why it matters

Allbirds' decision to exit physical retail in the U.S. marks a significant shift for a brand that was once synonymous with the tech boom in San Francisco. The closure of its last city storefront reflects broader challenges facing direct-to-consumer brands as they navigate the post-pandemic retail landscape.

The details

Allbirds said it is taking this step as part of a 'turnaround strategy' to drive toward 'profitable growth.' The company has been 'opportunistically reducing' its brick-and-mortar portfolio over the past two years, closing 14 U.S. stores in 2024 and nine more in the first half of 2025 as sales slowed and operating costs climbed.

  • Allbirds closed its original Jackson Square store in San Francisco last year.
  • Allbirds will shutter all remaining U.S. retail stores by the end of February 2026.

The players

Allbirds

A San Francisco-founded footwear brand that was once valued at $1.4 billion and rapidly expanded its physical retail footprint, but is now closing all of its U.S. stores as part of a turnaround strategy.

Joe Vernachio

The CEO of Allbirds, who said the store closures are an 'important step' to drive the company toward 'profitable growth.'

Got photos? Submit your photos here. ›

What they’re saying

“This is an important step for Allbirds, as we drive toward profitable growth under our turnaround strategy. We have been opportunistically reducing our brick-and-mortar portfolio over the past two years. By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business.”

— Joe Vernachio, CEO (sfchronicle.com)

The takeaway

Allbirds' exit from physical retail in San Francisco and the U.S. more broadly reflects the challenges facing direct-to-consumer brands as they navigate the post-pandemic landscape. The closure of the last city storefront marks a significant shift for a brand that was once a symbol of the tech boom, underscoring the need for these companies to adapt their strategies to achieve profitability.