Allbirds to shutter last San Francisco store as brand exits U.S. full-price retail by February

San Francisco’s last Allbirds storefront is closing as the company accelerates a broad retreat from physical retail.

Allbirds, the San Francisco-founded footwear brand that built its early identity around sustainable materials and direct-to-consumer sales, is closing its final brick-and-mortar store in the city. The remaining location—at 425 Hayes St. in Hayes Valley—has been the company’s last operating storefront in San Francisco after the earlier closure of its original Jackson Square store at 57 Hotaling Place.

The move is part of a wider plan to shut down all remaining U.S. full-price Allbirds stores by the end of February 2026. After that deadline, the company expects its physical footprint to be reduced to two outlet stores in the United States and two full-price stores in London.

A shrinking store network after rapid expansion

Allbirds’ store reduction has been building over multiple years. Public filings show a steep contraction from a peak of more than 60 stores worldwide in 2023 to roughly the mid-20s by mid-2025, with most of the cuts occurring in the U.S. and a separate international shift that moved several markets to distributor-operated models. The latest store-closing plan formalizes a strategy that prioritizes channels with lower fixed costs.

• San Francisco retail presence is ending with the Hayes Valley closure.
• U.S. full-price stores are slated to close by late February 2026.
• Only a small set of outlet and London locations are expected to remain.

What the company says it is optimizing for

In corporate communications around the closures, Allbirds has framed the decision as part of a turnaround aimed at profitable growth. The company has pointed to continued emphasis on e-commerce, wholesale partnerships, and international distributorships as routes to reach customers while reducing costs associated with running company-operated stores.

Allbirds has described the store exits as a cost-reduction step tied to a broader turnaround strategy focused on profitability.

Financial context and the local symbolism

The pullback comes as Allbirds’ market value has fallen sharply from early post-IPO highs. Recent market data places the company’s market capitalization in the tens of millions of dollars, underscoring the pressure to simplify operations and concentrate on channels that can scale without long-term lease obligations and high store labor costs.

For San Francisco, the closure marks the end of a retail presence for a company that was founded in the city in 2015 and became closely associated with the region’s tech-era consumer aesthetic. The brand’s products will continue to be sold online and through other partners, but its last city storefront is set to go dark as the company consolidates around fewer physical locations.