Wholesale agreements with REI extend Allbirds' distribution network further

Allbirds, the popular eco-friendly footwear brand, has made significant strides in 2021, expanding its retail presence and partnerships, and venturing into the apparel space.

In a shift from its direct-to-consumer (DTC) roots, Allbirds announced its intentions to enter wholesale in February. The brand has since partnered with three major U.S. retailers: Public Lands (owned by Dick's Sporting Goods), Nordstrom, and REI.

The partnership with REI sees Allbirds' footwear sold in 41 of REI's stores and on the retailer's website. REI also sells DTC brand Vuori in its stores, indicating a growing trend towards incorporating direct-to-consumer brands into their product lineups.

Allbirds' foray into apparel began in 2020, but the brand has since simplified its approach in the category, as announced in August. The assortment now includes Allbirds' Tree Flyer running shoe, its trail runner, and some of its more casual footwear like the iconic wool runner.

The brand also launched an activewear line in 2021, but the specific terms of its partnerships with REI, Nordstrom, or other retailers, as well as the financial performance of Allbirds, have not been disclosed.

Allbirds' U.S. stores have been the company's biggest growth driver, with a growth of well over 150% during the first quarter. The company has since expanded its retail partners to include Nordstrom, among others.

Retailers are reworking their stores to suit shoppers through complementary shop-in-shops, age-appropriate experiences, and integrated technology. However, the details of how retailers are deploying in-store technology beyond these measures have not been specified.

As of the end of September, Allbirds has a total of 55 brick-and-mortar stores. The brand has faced challenges, with widening losses and staff layoffs over the summer, but it continues to push forward in its expansion efforts.

The future of Allbirds' DTC sales in addition to its wholesale partnerships remains unclear. The search results do not contain information about which additional athletic lifestyle brand REI has incorporated into its product lineup in recent years. Despite the challenges, Allbirds' commitment to sustainability and innovative product design continues to resonate with consumers.