Allbirds Focuses On Store Growth, Global Expansion

Wool footwear brand Allbirds is wagering on physical retail stores despite the coronavirus. The firm recently closed a $100 million investment round that will partly back physical growth in international markets and bolster the size of its labor force, the Financial Times reported.

In October, the firm will open its 22^nd retail location in its home state of California. More locations will come in 2021, per Co-founder Joey Zwillinger, as noted by FT.

“It sounds crazy in this environment, but we are really committed to that channel. We think [shopping in stores] is going to come back,” Zwillinger said.

One rationale for the company making its own retail location network was to steer clear of the pressures from merchants and wholesalers.

The States remains the biggest market for the footwear brand, but other nations are fueling growth – especially those in the Asia-Pacific area.

“Sales in China are going to double this year, even though the pandemic happened there first,” Zwillinger noted.

Allbirds currently has 404 individuals working for the company, but the firm expects to hire more staffers in the months to come. That would conclude a hiring freeze brought about in early February, when the brand was first impacted by a drop in its Chinese sales due to coronavirus restrictions.

Sources recently told Hypebeast.com that the company’s newest investment round puts its value at $1.7 billion, a bit higher than two years prior. Global investment company Franklin Templeton led the funding.

Allbirds has stood out with its sustainable shoes produced from wool and other natural fibers and materials. The retailer has thus far attracted shoppers who are socially conscious, but is reportedly working to widen the appeal of its footwear.

“Business can be a force for positive change, and this additional capital will allow us to further our mission of bringing more sustainable products to people around the world,” Zwillinger said, per Hypebeast.