At a time when many companies are shutting down storefronts, Foxtrot just raised money to open more.
The company announced Thursday that it has closed a $6 million Series A in a round led by venture capital firm Fifth Wall, which specializes in real estate technology and also co-led Interior Define’s recent $15 million Series B.
What we’ve found is that every time we open a new brick-and-mortar store, the delivery business in that neighborhood explodes.”
“What we’ve found is that every time we open a new brick-and-mortar store, the delivery business in that neighborhood explodes,” said Foxtrot CEO Michael LaVitola.
Foxtrot has four stores in Chicago and plans to open an additional three to four new locations before year’s end. The company is setting its sights on national expansion in 2019, which Fifth Wall will help facilitate.
“Fifth Wall is excited to partner with Foxtrot to bring the real estate expertise of our team and our partners to the Foxtrot team to scale the business in Chicago and beyond, expanding the reach of the unique experience they have created to neighborhoods and city centers across the country,” Fifth Wall co-founder Brendan Wallace said in a statement.
Foxtrot’s retail locations feature a curated selection of craft beer, wine, spirits, food and everyday essentials, with a priority put on products created by local companies. Everything found in-store can be ordered on demand, with delivery taking place in one hour.
“Over the past few years we’ve been able to take the curated, on-demand Foxtrot experience and truly tailor it to our neighborhoods and customers here in Chicago, and are eager to do the same for communities across the country,” said LaVitola in a statement.
To support the growth of its e-commerce business, Foxtrot will be doubling its headcount and hiring across the board. LaVitola said the company’s team — which currently sits at eight people, not including its store staff — will likely double over the next year. Foxtrot will be hiring for its engineering, marketing and operations team.
In addition to opening new locations and hiring, Foxtrot will also put an increased focus on creating content around the products it sells and growing its gifting business.
