Popular footwear retailer once worth $1.4 billion shuts down original store in city following 15 closures last year
After 15 closures last year, a well-known shoe retailer that was previously valued at $1.4 billion has closed its original location.
In 2017, the Allbirds store opened its doors in San Francisco’s Jackson Square.
The business, which specializes in cozy footwear, then experienced significant growth, and the next year it increased the size of its office space.
However, managers have now made the decision to lease the 5,000-square-foot site.
As a result, the only Allbirds location left in the city is 425 Hayes Street in Hayes Valley.
The loss of Allbirds’ flagship location is the most recent in a series of brand closures.
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Last year, co-founder Joey Zwillinger declared that ten to fifteen “underperforming” stores, or one-third of all US stores, would be closed before the year was out.
The Jackson Square branch’s listing describes the location as having “brick and timber charm” and being close to a number of eateries.
In 2015, Joey and her friend Tim Brown, a former New Zealand soccer star, established Allbirds.
Before branching out into other products, the firm first sold sneakers made of merino wool.
The business now plans to concentrate mostly on online sales after experiencing financial difficulties.
It comes as the country is predicted to see 15,000 retail closures this year.
Compared to last year’s 7,325 closures, this represents a significant increase and would be the most since the 2020 pandemichit.
Retail behemoths like Big Lots, Macy’s, and Walgreens have already revealed that thousands of shops will soon collapse, with Party City leading the pack with 738 planned closures.
This month, John Mercer, chief of global research at Coresight Research, discussed the prediction exclusively with the U.S. Sun.
He stated: “We re expecting elevated closure numbers to persist in 2025 as we are expecting this to be a period of disruption and adjustment – from newer, high-growth competitors and from policy changes,” stated Mercer.
“Depending on how those types of disruptions play out, there s potential for effects to endure beyond 2025 as multiyear effects from policy changes and increased competition impact physical retail.”
Mercer listed the growing popularity of “low-price cross-border retailers and marketplaces” like Temu and Shein as one of the causes of the trend.
Some shops have a more optimistic outlook and are considering growing in 2025, despite the large number of stores closing this year.
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According to the Sheetz CEO, the gas station business has “big plans” to expand by up to 60 locations.
Additionally, Trader Joe’s announced that additional locations will open in eight states as fans “manifest” layout changes.
Announced Store Closures in 2025
As of January 10, 2025, there have already been 1,925 store closures announced for this year.
The top five retailers with the highest anticipated shutter counts are as follows:
- Party City: 738
- Big Lots: 601
- Walgreens: 333
- 7-Eleven: 148
- Macy’s: 51
Source: Research by Coresight