The fast-growing retailer’s new 2,400-square-foot boutique on South Congress Avenue is its first location in Texas.
Founded in 2014 by New Zealand native Tim Brown and engineer Joey Zwillinger, Allbirds makes shoes known for their natural materials, simple design and comfortable construction.
The company was initially online-only before embarking on a global brick-and-mortar expansion.
Allbirds is the first retailer to open in Music Lane, a $55 million mixed-use project at 1009 and 1011 South Congress Ave. The development has 63,000 square feet of space and will include 25 retail, office and restaurant tenants when fully leased.
“We already have a tremendous base of customers in Austin, and it’s exciting for us to create a physical space for them to visit,” said Travis Boyce, head of global retail operations for Allbirds. “Austin’s culture and food and funky vibe resonates with our brand. So does the fact that people care where things come from, the material that’s used and how they’re made.”
The idea for the original Allbirds shoe came about when Brown received a research grant from the New Zealand wool industry to create a sneaker.
The company’s first style was the Wool Runner, a sneaker made from sustainably sourced merino wool both for the insole and exterior.
Today, in addition to wool, Allbirds uses natural materials including eucalyptus tree fibers and sugarcane. The shoes contain no leather and have no logos. Most styles start at about $95.
Allbirds is backed by $75 million from investors including T. Rowe Price and Fidelity, and recently announced plans to raise another $75 million.
The investment has allowed the company to expand its footprint in the United States and globally, with 15 stores in cities including Tokyo, London, Berlin, Los Angeles, Chicago and New York.
In addition to doubling its number of stores this year, Allbirds is using its funding to create new textiles and products, including socks.
Allbirds said it will its planned funding round to become carbon positive — meaning it would remove more carbon dioxide from the planet than it produces.
The company said it also plans to invest in regenerative agriculture, renewable energy across its supply chain and the elimination of unrecycled plastics.
In Austin, Allbirds is the latest national brand to open shop on South Congress, joining others including eyewear company Warby Parker, Toms Shoes and women’s clothing boutique Madewell.
“For these brands, it’s not really about the walk-in sales,” said Matt Epple, senior vice president at commercial real estate firm Weitzman. “It’s about saying not only are we in Austin, we’re on South Congress. There’s a coolness factor they’re able to leverage on Instagram and in online sales.”
Boyce said that Allbirds’ address on South Congress is about more than branding.
“We view it as not just a billboard,” he said. “It certainly is a way for new customers to discover and learn about our brand. But for existing customers, we’ve found when they come to the store they often have a better experience than online, and that brings them back.”