Neighborhood Goods, a retailer that positions itself as the modern reinvention of the traditional department store, has raised $11 million in a new round of financing led by Global Founders Capital to aid in expanding its brick-and-mortar presence.
More specifically, the funding is designed to help Neighborhood Goods secure more real estate, build its staff, ramp up its supply chain with faster delivery options and build out a backend digital platform where all the retailer’s brand partners can check sales metrics in real time.
The Texas-based company has raised $25.5 million to date and is expanding into a new location in Austin to complement its store in Plano. Later this year, the retailer is planning to open a location in New York City’s Meatpacking District, according to CEO and Co-Founder Matt Alexander.
Further ahead, Neighborhood Goods says it’s planning to roll out more locations in 2020. Alexander told CNBC that he can see the company getting to the point where it opens a new shop as rapidly as every three to four months.
In building out a modern department store that showcases a rotating collection of products from newly popular brands such as Rothy’s, Dollar Shave Club, Draper James and Stadium Goods, Alexander aims to create an environment that adapts to consumer shopping habits. For example, Neighborhood Goods holds weekly events like workout classes, gardening workshops and tastings. During a panel at The Lead Innovation Summit held July 9-10, Alexander noted that innovation is fluid and must be a continuous process.
“There’s always going to be a ‘work in progress,’” Alexander said. “You have to have a general sense of self-awareness and willingness to acknowledge that you don’t necessarily have a finished product and the answer to every problem.”
Previous investors Forerunner Ventures, Serena Ventures, NextGen Venture Partners, Allen Exploration, Capital Factory and others participated in the most recent round.