Neighborhood Goods earlier this week announced it raised $11 million in funding, and plans to open a third location in 2020 in Austin, Texas. The Series A funding will allow the company to expand its store and Dallas headquarters staff and brings its total fundraising total to $25.5 million, according to a press release emailed to Retail Dive.
As the company expands its brick-and-mortar presence, it also is revamping its online offerings. Shoppers can preview events, brands and products at the retailer's stores, as well as pick up in-store, per its press release. The retailer is also creating an online platform that will let brands within its stores to retrieve real-time data, analytics and feedback.
The company also noted its growing number of brand partners, which include Rothy's, Dollar Shave Club, Fossil, Cynthia Rowley and TASCHEN. The retailer is planning to introduce 16 new brands in Plano during the next six weeks, bringing the total active brands to 58.
Neighborhood Goods, which opened its first store in November last year, curates its product selection and includes items from a number of direct-to-consumer companies. Many DTC brands, including Allbirds, Casper, and Adore Me, have recently been expanding into brick and mortar stores, a strategy that has been a critical step in obtaining consumer trust.
In its announcement, Neighborhood Goods hinted at how the company will use its new physical spaces to enhance customers' shopping experience. In addition to the Austin store plotted for 2020, the company will open its second location in New York's Chelsea Market later this year, which it says will be "similar to a boutique-style layout" to encourage product testing and customer acquisition.
"In Plano, we will soon more than double the number of active brands since launch, whilst continuing to drive an incredibly thoughtful, progressive, and exciting mix of events and activations in the store," Co-founder and CEO Matt Alexander said in a statement.
As the retailer collects brands within its modern department store, it, as well as Showfields, seem to be trying to modernize concepts of traditional department stores. Meanwhile, having a brick-and-mortar presence allows the retailer to facilitate its pick up in-store offering, a trend that's gained traction this year.