Wholesale partnership between Allbirds and REI further broadens Allbirds' product distribution network.
Allbirds Expands Retail Presence and Partnerships for Sustainable Growth
Allbirds, the direct-to-consumer footwear brand known for its eco-friendly products, announced its intentions to enter wholesale in February and has since been making strides in the traditional retail sector.
The company's U.S. stores have seen impressive growth, with a surge of over 150% during the first quarter, making them the primary growth driver for Allbirds. This success led to the expansion of its own store fleet to a total of 55 brick-and-mortar stores as of the end of September.
Allbirds has partnered with several major retailers to broaden its reach. In February, the brand entered wholesale through two deals, with Zalando and Public Lands (owned by Dick's Sporting Goods). Since then, Allbirds has also partnered with Nordstrom and REI, with the latter being a significant step towards building brand awareness and reaching more customers both online and offline.
The partnership with REI supports Allbirds' sustainable growth plans. Allbirds' footwear, including its Tree Flyer running shoe, trail runner, and more casual options like the iconic wool runner, are now available in 41 of REI's stores and on the retailer's website. REI also sells DTC brand Vuori in stores.
Allbirds' foray into wholesale and retail partnerships comes after its entry into the apparel space in 2020. However, in August, the brand backtracked on its apparel strategy, planning to "simplify" its approach in the category. This simplification included sunsetting its leggings and focusing on durable profitability.
Despite these changes, Allbirds has faced widening losses. The brand has also had to make tough decisions, such as laying off staff over the summer. However, Allbirds remains committed to its sustainability focus, sharing this commitment with REI, as both brands strive for better business stewardship.
Allbirds and REI's shared values and strategic partnership are expected to contribute to Allbirds' continued growth and success in the competitive retail landscape.
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