CHICAGO—Upscale convenience store chain Foxtrot, which offers 30-minute delivery and five-minute pickup, announced $100 million in Series C funding, according to a news release. The Series C brings total funding to $160 million.
"With this new round of funding, we'll continue to accelerate the expansion of our brick and mortar presence, enter new and emerging markets and double down on new store formats that answer consumer demand for immersive programming and highly curated assortment,” said Mike LaVitola, co-founder and CEO of Foxtrot. “Our investments in technology will enhance our retail experience and drive omnichannel growth. We look forward to bringing Foxtrot to new neighborhoods and highlighting the small makers that make our industry so exciting.”
Foxtrot has opened 16 brick and mortar locations across Chicago, Dallas and Washington, D.C., and plans to use the capital to open 25 new stores in 2022, including locations in Boston; and Austin, Texas, as well as additional Chicago stores. In 2023 and beyond, Foxtrot plans to expand into New York, Nashville and Miami, while simultaneously expanding its presence in current regions.
Foxtrot was launched in 2014 with an aim to “modernize the nostalgic corner store experience by creating a digital-first, e-commerce platform paired with a beautiful retail experience.” Foxtrot's operating model leverages retail stores as delivery hubs. Its five-minute market pickup has grown 250% this year, with cafe orders within the channel increasing 375% year to date. Customers order via an app, and the average order is $50.
To power its internally developed omnichannel operating system, Foxtrot says it will prioritize hiring engineering talent, with a plan to triple the team's size over the next 12 months, bringing on dedicated hires to optimize logistics, store payments, inventory management, personalization and Perks, Foxtrot's loyalty program.
“Foxtrot's omnichannel shopping, supported by Perks, has grown +110% YTD,” writes Foxtrot in the release. “With further investments in personalization and omnichannel digital UX, Foxtrot will focus on further fostering customer loyalty to drive effective customer acquisition, deepen engagement across the whole suite of offerings and garner stickier customer behavior.”
Foxtrot’s specialty is private-label products, and the company says it’s “investing in a deeper private label assortment around meal-times.” Over the next year, Foxtrot plans to create and launch about 200 new private label SKUs. Since introducing private label products one year ago, the assortment of Foxtrot-branded and -created labels now account for nearly 30% of all retail offerings and nearly half of all brick-and-mortar and online sales.
In addition to private-label and major consumer brands, the stores offer products made by local artisans. It’s also planning to “double-down” on its core offerings of coffee, ready-to-eat cafe meals and wine.