What’s most impressive about Neighborhood Goods, compared with some of the other companies trying to mimic this model, are the brands it’s already attracted, partnered with and started to sell in its Texas store. Among them: Walmart’s direct-to-consumer mattress brand Allswell, actress Reese Witherspoon’s clothing line Draper James, men’s and women’s wellness brands hims and hers and sneaker marketplace Stadium Goods.
“Our particular approach, which focuses on design and experience, has been attractive to a lot of those [brands],” Alexander said. “Whether brands, investors, or property developers — they’ve all been looking for some sort of concept that could lower the barrier to entry into retail, help fill vacant space at their developments … [and] allow for more efficient customer acquisition opportunities.”
As a wave of struggling retailers like Payless ShoeSource, Charlotte Russe and Gymboree shut stores in malls and shopping centers across the U.S., landlords and surviving retailers are looking for what’s going to fill those gaps.
Alexander said that while hanging out in the Texas store, he has seen executives of major retailers checking it out. Everyone wants to know what the buzz is all about. “Everyone has been flying in,” Alexander said.
Looking to the future, Neighborhood Goods is planning to open “a number of locations” across the U.S. over the next two years — in major markets like New York and in smaller suburbs similar to Plano. The company hasn’t disclosed where exactly its new store will be in New York.
Neighborhood Goods’ latest funding round was led by Global Founders Capital, with participation from prior investor Forerunner Ventures, along with Maveron, NextGen Venture Partners, Revolution’s Rise of the Rest Seed Fund, Ground Up Ventures, Capital Factory and Dollar Shave Club CEO Michael Dubin.
“Not only has the consumer been waiting for this retail experience, but the brands as well,” said Nicole Johnson, an investor at Forerunner Ventures.
Neighborhood Goods declined to comment on its revenue stream or valuation as a private company. But Alexander said “from a valuation perspective, our post-money valuation has more than doubled with this round.”