Neighborhood Goods is expanding its department store of the future concept. The retail start-up will open its third location, in a new mixed-use development in Austin, Texas. The 10,000-sq.-ft. store is due to open in 2020.
Designed as a modern alternative to the traditional department store, Neighborhood Goods combines an ever-changing line-up of contemporary brands — many of them cult faves and/or digital natives — along with events and services. The company offers a variety of leasing and space options that make it easy for brands to set up shop and rotate in and out.
Neighborhood Goods recently raised $11 million in funding, led by its long-term partners at Global Founders Capital, bringing its total funding to $25.5 million. (Forerunner Ventures, Serena Ventures, Capital Factory, NextGen Venture Partners, Allen Exploration and all other original investors have also contributed.)
“We’re incredibly proud to have raised these funds primarily from our original group of investors from the beginning and are incredibly grateful for their belief and support,” Matt Alexander, Neighborhood Goods co-founder & CEO wrote in a blog on the company’s website. He added that the $11 million figure will expand during the coming weeks.
Neighborhood Goods made its debut in late 2018, with a 14,000-sq.-ft. outpost at Legacy West in Plano, Texas. It opened with about 24 brands and now has about 42, with another 16 launching soon. The lineup includes the likes of Stadium Goods, Buck Mason, Draper James, Primary, Simplehuman, Pure Cycles, The Daily Edited, Rothy’s, Dollar Shave Club, Fossil, Taschen, Cynthia Rowley and more.
“In Plano, brands are able to test merchandising strategies in a large space, assess new store design concepts, access a thriving suburban market, and host all manner of events,” Alexander said.
The company will open its second location later this fall, in a high-profile site at the entrance to Manhattan’s Chelsea Market. The store will feature its own restaurant concept specific to the locale.
In the near future, Neighborhood Goods will be rolling out a brand platform to provide real-time access to data, sales, inventory, and feedback from store teams.
“Ensuring that data becomes table stakes will free up an enormous amount of time, while allowing us to have much more productive, insightful, and forward-looking conversations with our partners,” Alexander said.