Angela Rakis’ Post

The news of Foxtrot's closure last week was devastating and my deepest empathy goes out to all those affected—to the employees, the brands, and all who partnered in bringing the retail concept to life, many of whom are my customers, peers, and friends. For me, personally, this has been the loss of a fellow pioneer. Since starting Pop Up Grocer in 2019, barely a day has gone by without the retailer coming up in conversation. Foxtrot was by our side in supporting emerging brands—often times, like us, serving as their very first shelf. Larger retailers have extremely high barriers to entry and independent stores have limited reach—these brands need somewhere of meaningful impact to go, quickly. And while their failure, for many, will simply help draw the conclusion that “small format”, “premium convenience,” and “emerging brand-first” doesn’t work. Or, as I’ve seen commentary here, “a lack of product/market fit,” I respectfully and sorely disagree. One must look closer. For us, I won’t pretend to be without challenges—the market has significantly changed since our start five years ago and this has impacted our brand partners as well as our own costs of doing business. But, we believe very much in the opportunity to serve these emerging brands and to provide a much-desired and unique experience for our customers—now, more than ever. If you are a brand looking for a shelf with high visibility, I hope you will reach out. And if you are interested in joining us in this pursuit—as an investor or other strategic partner—I would love to connect. 

Foxtrot and Dom’s Kitchen & Market collectively operated less than 40 stores in just a few markets. The former was just a decade old, while the latter’s first location hadn’t even celebrated three years in business. But when the news hit last week that both retailers, which merged last fall under newly formed parent company Outfoxed Hospitality, had ceased operations, the outpouring of shock, grief and frustration across the industry was enormous. It’s not clear what led to the demise of Foxtrot and Dom's — two retailers that that had seemed so promising. What is clear, however, is that Foxtrot and Dom’s were operating during a tough time for upscale, innovative retailers. Their downfall comes as both consumers and retailers are feeling more pressure than ever to cut costs, pare down and focus on the essentials. Indeed, we’ve entered a period where creative new retail ideas will struggle to flourish against the raw power of large players and the grinding need for efficiency — and it’ll likely only get tougher from here.

As someone who hadn't experienced Foxtrot and Dom's Kitchen & Market firsthand, the sudden closure of these businesses prompts reflection on what customers truly seek from their grocery experiences. This article sheds light on the challenges that innovative retailers face amidst the dominance of larger competitors and the demand for efficiency. Despite their ambitious growth plans, both Foxtrot and Dom's ceased operations abruptly, leaving the industry reeling with shock and frustration. Foxtrot revolutionized convenience by offering a multifaceted experience encompassing a café, grocery, and delivery services, while Dom’s distinguished itself through culinary excellence with its foodservice stations. The demise of these retailers sparks speculation about the viability of their business models and the effectiveness of their financial management. In an era where cost-cutting and essential-focused strategies reign supreme, retailers struggle to sustain imaginative concepts in the face of industry giants. Foxtrot's labor-intensive model and Dom’s experiential focus encountered significant pressure to deliver consistent returns. The relentless competition driven by efficiency and evolving consumer spending habits poses challenges for startups, while established players like Aldi thrive with their lean operations. However, amidst these challenges, there remains opportunity for innovation, albeit in a more focused and selective manner. Retailers must strike a delicate balance between cost-cutting measures and providing unique experiences to stay competitive in today's landscape. Whole Foods serves as a prime example, maintaining customer excitement through innovative store designs, emphasis on local sourcing, and meticulous brand development. In conclusion, the abrupt closure of Foxtrot and Dom’s serves as a reminder of the imperative for retailers to pilot innovative concepts while nurturing strong connections with customers, even within an environment demanding utmost efficiency. #RetailInnovation #CustomerExperience #GroceryTrends

from CSP and ModernRetail, we're seeing some terrific reporting and analysis on the sudden downfall of a once high-flying Foxtrot. #modernretail #cspdailynews #foxtrot

Remember Foxtrot? The upscale corner store with a unique selection of products? Well, if you haven’t heard, they recently closed all of their stores and it was pretty abrupt. So what does that mean for the Foxtrot employees, featured brands, and investments? Head over to my blog to hear my thoughts on Foxtrot closing. https://lnkd.in/d5Qq2rFy Did you have a chance to shop in Foxtrot before their closure? Let me know in the comments. #foxtrotmarket #favoritedaughterfavoritethings #favoritedaughter

Hy-Vee, Inc. has announced the acquisition of STRACK & VAN TIL SUPER MARKETS, INC. chain, adding 22 new store locations in Northwest Indiana. Our analysts will keep abreast of this situation and keep our subscribers updated. Stay tuned for more updates! #HyVeeExpansion #RetailNews #Grocery #RetailOpeningsAndClosings 🛒

Hannah (Prokop) Hammond's first-person reflection on Foxtrot is a showcase in the importance of neighborhood journalism. There is a lot to this story that has yet to revealed but from a 30,000 foot perch, the stunningly abrupt shutdown took me back some 22 years ago when a venture-backed M&A beast called Swifty Swerve closed and literally padlocked overnight 500+ stores across the South, casting thousands of employees out of work and without a paycheck. Swifty soon descended into Ch. 7 bankruptcy after a multi-year run of aggressive growth and a flood of mounting debt that Swifty's investors never knew. On some levels, you cannot compare Foxtrot to Swifty. The latter was about scale and a mass of inferior stores, while the former was the gilded knight, bedecked in upscale ornaments and aspirational affluence. But what the two likely share is what lay beneath the glittering self-praise and self-promotion. Too many mistakenly believe convenience is a guaranteed pot of gold. It's not. It requires extraordinary discipline, a narrative (which Foxtrot certain had) and, as longtime industry savant Gerald Lewis nails it, customers. It's easy to get caught up in extravagance and hype, but someone ultimately has to pay for that investment. I remember not so long ago when a respected c-store chain opened up a striking prototype. My eyes were taken in by the visual magic. But a sober executive at another company confided, "this will be closed or converted in under 3 years." I looked at him in disbelief and wondered aloud whether he was simply jealous. "No, it's not about jealousy," he replied. "The store is beautiful. The question is whether the store can pay for itself. They're going to have to either get a lot more traffic into the store or price everything at a super premium." He guessed (rightly btw) that the store cost about $2m more to build than the typical cstore at the time. The business didn't justify the cost. And I suspect that, at least in part, is what happened to Foxtrot. #cspdailynews #hannahhammond #foxtrot #swiftyserve #bankruptcy

Operating urban C-Stores without fuel can be incredibly difficult. High cost structure, external challenges, and many times higher shrink just to name a few. I remember reading this article 2-years ago and being surprised that Foxtrot achieved 100M in PE funding so early on in the concept, especially considering where their NOI was at the time. While the details of why Foxtrot failed will come out in time, I think this is a core reminder to us all that while we elevate our brands, we can’t forget how important delivering value is, the evolving “behind the counter” category, and the importance of marketing to wide enough of a segment of customers so EBITDA doesn’t miss the mark when unpredictable factors affect categories or locations. Our industry is thriving, and I have no doubt many of our brands will get to recruit some amazingly talented people who unfortunately lost their jobs at Foxtrot. #conveniencestores Convenience and Energy Advisors

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