Allbirds has become the latest retailer to close its brick-and-mortar stores

Shoe brand All birds On Wednesday, it became the latest retailer to shift its focus from physical stores to online retail to increase profitability.

The company announced that it will close its remaining full-price stores in the United States by the end of February to use its resources on e-commerce and partnerships.

“This is an important step for Allbirds as we move toward profitable growth under our transformation strategy,” Allbirds CEO Joe Vernacchio said in a statement. “We have opportunistically reduced our brick-and-mortar portfolio over the past two years. By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business.”

Allbirds said it will continue to operate two stores in the United States and two full-price stores in London.

The sustainable footwear company got its start in Silicon Valley and thrived during the direct-to-consumer marketing boom, filing for its initial public offering in 2021. It joined a number of DTC companies that sought to build their customer bases through physical retail and relied on opening stores to bolster balance sheets.

Now, as rents rise, physical retail loses its luster and being digitally native becomes more important, Allbirds and other DTC companies are starting to shift their focus. The sneaker company previously announced a phased closure of stores across the country.

In its third-quarter earnings report, in November, the company said its net revenue was down 23.3% from the same period last year, primarily due to impacts from international distributor changes and physical store closures. Compared to last year, net revenue from stores in the United States decreased approximately 20%.

Allbirds has a market capitalization of $32 million, but has seen its shares decline more than 80% over the past two years.