Allbirds is rethinking its in-store experience.
On the footwear company’s first quarter earnings call, Allbirds chief executive officer Joe Vernachio told analysts about a new refreshed store concept it was piloting at its Hayes Valley location in San Francisco, Calif.
“Our objective was to create an environment that feels personal, inviting, and one that amplifies our authenticity–in essence, the ‘home’ of Allbirds,” the CEO said at the time. “We believed the space could better reflect who we are and what we stand for: intentional design, incredible comfort and high quality.”
According to Vernachio the updates included changes to layout, fixtures, navigation, and visual merchandising, all resulting in a space that’s “warmer, more welcoming, and much easier to shop.”
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One of the main points of difference in the store design is how the brand’s shoes are displayed. “In our current store format, we have a single footwear wall, where many of the shoes cannot [be taken] off the wall,” the CEO explained. “They are on lasts and fixed to the wall. It’s very difficult to shop a shoe that you can’t pick up and look at the stance of the shoe in different orientations.”
Now, products are positioned on pegs, rather than adhered to lasts, which means customers can pick up, touch, feel and properly experience the product. Allbirds has also made changes to its merchandising and imagery throughout the stores in order to tell more “in-depth” stories.
“Our newly installed fixture package allows us to market more ‘stories’ at the same time–whether that’s product marketing or brand initiatives,” Vernachio said. “These updates increased branded images throughout the store by three-times, offering more storytelling space and increasing opportunities to immerse and educate our customers.”
And to achieve a more elevated look, the company added more modern tables styled with curated props, books and greenery. Newly installed light dimmers; plush seating in the form of modern sofas, ottomans and chairs; and colorful rugs lend a warmer, more inviting feel to the in-store environment, Vernachio noted.
“These improvements require minimal investment but deliver outsized impact,” the CEO added on the call. “These improvements are already delivering measurable impact, driving increased engagement and higher daily sales.”
Following its initial test in San Francisco, the company is set to roll out this new format to two additional locations – its SoHo store in New York City and the Stanford Shopping Center store in Palo Alto, Calif.
“We plan to build on our key learnings and expand the concept around more stores in the coming quarters,” Vernachio said.
This comes as the San Francisco-based company reported earlier this month that its net revenue in the first quarter of fiscal 2025 decreased 18.3 percent to $32.1 million, compared to $39.3 million in the same time last year. There was also a net loss in Q1 of $21.9 million, compared to $27.3 million in the first quarter of 2024.
Earnings for Q1 were in line with Allbirds’ expectations, however. For the first quarter, the company was expecting net revenues between $28 million to $33 million.
During Q1, Allbirds said it closed five retail stores and had one additional closure after the quarter ended. That brings the company to a current U.S. store count of 24.
Looking ahead, Allbirds expects net revenue for fiscal 2025 to be between $175 million to $195 million. In the second quarter of 2025, the company expects net revenue between $36 million to $41 million.
