Allbirds to sell its sneakers in select Nordstrom department stores
Nordstrom signs outside of one its full-line departmental stores
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AllbirdsSelect customers will be able to purchase its shoes NordstromCompanies announced Tuesday the opening of department stores in the United States next month. The sneaker brand is looking to establish partnerships with retailers and expand its market reach.
Beginning June 1, Allbirds will have a variety of shoes available at Nordstrom’s 14 locations. They also announced that the assortment would be expanding to Nordstrom.com and other stores in the future.
Allbirds believes the move will allow them to attract new customers, and increase their profitability. The move is emblematic of a larger trend for retailers, such as Allbirds. Warby ParkerIt began by selling only products online directly to consumers.
Increasingly, such direct-to-consumer companies — including Casper mattresses, Harry’s razors and athletic apparel makers Vuori and Outdoor Voices — have expanded to sell through third parties. Other companies have pushed to open dozens of brick-and-mortar storesIt is possible to meet shoppers face-to-face. These changes have allowed the businesses to resemble more long-established retailers like NikeOder Ralph Lauren.
Nordstrom is now the company of choice for smaller retailers that want to try wholesale. The deal also gives Nordstrom an advantage over its rivals like Macy’sAnd Kohl’sItems that are sure to attract customers.
Allbirds has announced two new retail partners, Public Lands and Public Lands. Dick’s Sporting GoodsZalandao in Europe and Zalandao (in the United States). At the time, it teased that further deals were being made.
Selling through other retailers should help Allbirds reach consumers who would have not known about the brand otherwise, Joey Zwillinger, Allbirds co-founder and co-CEO, said on a post-earnings conference call in mid-May.
The company hopes to appeal especially to environmentally-conscious shoppers. Allbirds will be available in 2020 committed to cutting its carbon footprint in half by 2025. Company also claims it labels its products according to their carbon footprint scores.
Zwillinger says that Allbirds brand awareness in America is in the lower double digits of 100 percent. He said that third-party retail is a “highly effective way to increase awareness and build credibility.”
Allbirds Shoes are made from wool and have laces that are made of recycled plastic bottles.
Allbirds hopes the investors will be more confident with this move. The shares of Allbirds have plummeted from their high point in an IPO price of $15Monday closing at $4.68 The Allbirds stock exchange was listed last November by the Nasdaq before the window closed for public debuts due to surging inflation, Russia’s war in Ukraine.
Allbirds net loss increased to $21.9million from $13.5 million in the year prior. That’s even as its sales grew 26% to $62.8 million, up from $49.6 billion.
Allbirds also reduced its outlook for 2012, citing continued disruptions to the business abroad due to Covid-related lockdowns.
Allbirds and Nordstrom are not new partners. Allbirds was the first retail partner to open in Nordstrom’s pop-up shop. Nordstrom also collaborated with Kim Kardashian’s Skims brand and other online-first brands. On Running.
Zwillinger stated that Allbirds will be careful about the way it expands its third-party businesses during the conference call. Zwillinger stated that the company expects to not see any significant impact on its financials by 2022 but that partnerships could be used to generate new business in the next year.
Simeon Sigel is a BMO Capital Markets analyst and has advocated that wholesale be used by retailers to establish a profitable business with high gross margins. Ralph LaurenCalvin Klein and Calvin Klein owners PVHBusinesses that successfully applied the strategy.
Siegel stated in an interview that wholesale is a key component of companies building very strong and large businesses. Wholesale shouldn’t be completely avoided and dismissed as bad.
He said that companies who push too hard into wholesale can damage their reputation by using excessive discounts and confusing messaging.
Nordstrom will release its first quarter fiscal results Tuesday, after the markets close.