When most people think of Department Stores, they picture these retail giants closing one store after another. Neighborhood Goods is looking to challenge this idea with what it calls a “new type” of department stores.

Making a Mark

Currently, Neighborhood Goods has a single location in Plano, Texas. It opened last year. Before the end of the year, it will open another in New York’s Meatpacking District. Recently, it announced that 2020 will see a third location on Austin’s South Congress Avenue. It also plans to roll out additional locations next year.

The company’s co-founder, Matt Alexander, recently told CNBC that he pictures Neighborhood Goods expanding enough to open new shops every three or four months.

The announcement of the planned third location came as the company disclosed it raised $11 million during a Series A round. This brought total funding up to $25.5 billion. The fresh capital will help with quicker supply chain delivery, getting more real estate, and creating a back-end digital platform that its brand partners can use.

The Model

Some elements of the Neighborhood Goods’ model are familiar. It wants large-format locations that let brands enjoy dedicated shelf space while the store serves as a wholesale partner.

Neighborhood Goods aims to make sizeable locations where large brands can sell their merchandise on a rotating basis. That is a sharp contrast to the model of traditional department stores, which feature permanent brands. Many of the brands began on the internet or are up-and-coming. As such, you will not necessarily spot familiar department store brands in Neighborhood Goods.

Apart from the stores, Neighborhood Goods can feature restaurants and hold weekly events, such as taste testings, gardening workshops, and workout classes. The idea is to create an atmosphere that attracts customers and encourages them to come back.

Source:

https://www.cnbc.com/2019/09/11/neighborhood-goods-announces-11-million-in-funding-new-austin-store.html

The post A Closer Look at Neighborhood Goods’ Model: The Company Offering ‘New’ Department Stores appeared first on Subastral Inc..