The corner store and café concept convenience market tailored for the modern consumer, Foxtrot Market, has received a $42 million Series B growth investment. The round was led by David Barber’s Almanac Insights and Monogram Capital Partners. Backers also include food and hospitality industry heavy hitters David Chang, founder of Momofuku; Nicolas Jammet, co-founder and chief concept officer of sweetgreen; and Walter Robb, former CEO of Whole Foods.
With the investment, Foxtrot expects to double its store count by the end of 2021. The growth will include adding as many as nine stores to its current footprint in Chicago and Dallas, and expansion into new markets including Washington, D.C.
Funds will also be used to expand its line of private label packaged goods and gift offerings, and to continue the investment into nationwide shipping, which launched in January. By accelerating its e-commerce capabilities and offering nationwide shipping on items like chef-driven packaged products, private label and exclusive-to-Foxtrot goods, and wine, Foxtrot aims to further itself as the nation’s premier corner store.
Additionally, Foxtrot has made three new appointments to its executive team: Sumi Ghosh, COO; Scott Holloway, senior vice president, delivery; and Caroline Barry, vice president, strategy. The newest leadership additions, who have earned their stripes in leadership at Starbucks, Instacart and sweetgreen, respectively, will be core to the brand’s growth in this next phase.
“With this new round of funding and an incredibly strong executive team now fully in place, we see 2021 as a year of tremendous growth for Foxtrot,” said CEO and co-founder Mike LaVitola. “We have built a business that marries the local approach of a corner store with the convenience of e-commerce. We know how our stores operate best and in which markets, which is where we’ll be going deep with our expansion efforts next. We also look forward to showcasing to customers coast-to-coast what Foxtrot is all about as we continue to rollout shipping nationwide.”
Launched in 2014, Foxtrot combines an upscale corner store and café with app-based purchasing that makes its entire inventory available for delivery in under an hour. Foxtrot derives its revenue equally between online sales and in-store purchases. The brand’s delivery model has been central to its customer service strategy since inception, making Foxtrot uniquely positioned for strength during the pandemic.
In 2020, company sales increased over 100 percent fueled by consistent year-over-year growth across channels. Of that growth, 55 percent derives from retail, largely from same-stores sales, and over 200 percent from e-commerce, driven by 100 percent increase in app downloads.
In addition to grocery staples, Foxtrot stores offer a full-service café, sommelier-curated wine shop, and unique gift bundles for every occasion via on-demand delivery and in its tech-enabled brick-and-mortar stores. Select gift bundles are also currently available in Foxtrot’s Ship Shop, which will continue to add offerings as it expands its nationwide shipping capabilities.
Additional investors in Foxtrot’s Series B round include Imaginary Ventures, Wittington Ventures, Fifth Wall, Lerer Hippeau, Revolution’s Rise of the Rest Seed Fund, M3 Ventures, The University of Chicago, Collaborative Fund, Wasson Enterprise, Bluestein Ventures and Barshop Ventures.
