Foxtrot reopened its first store in Chicago Thursday.
To catch you up, the convenience retailer joined forces with Dom’s Kitchen & Market last fall, with the hopes of using their combined scale and capabilities in fresh food retailing to further grow a multi-format business. Unfortunately, they got ahead of their proverbial skis, and investor funding dried up shortly after the merger. In April, they abruptly shuttered all stores and filed for Chapter 7 bankruptcy protection.
A Brief History of Urban Convenience-Store Chain Foxtrot
But now Foxtrot is back with its founder, Mike LaVitola, at the helm and the backing of new investors. There were many at the time of the bankruptcy announcement who said Foxtrot’s demise was inevitable. A small box packed with good-tasting fresh food, beverages and on-trend merchandise simply couldn’t turn the necessary profit, they said.
But here are four reasons why I believe Foxtrot will succeed and their rebirth is worth paying attention to:
- They understand urban. It’s difficult to operate retail stores in an urban environment. However, Foxtrot had figured out how to attract quality employees and deliver a distinctive experience. Their customer counts were strong in a majority of their stores.
- Customers prefer shopping in smaller stores. This has been a trend in retailing for some time. Consumers continue to visit multiple stores during the week either in person or online but still want to save time. A vast majority of convenience purchases are impulse buys, and the customer has decided less than an hour before that they have a need. Foxtrot filled that need with a great selection of curated products and fresh, quality food and beverages, along with an amazing alcohol assortment.
- Fresh, quality products win. Foxtrot is building a hybrid grocery and convenience business that does not rely on gas or nicotine products to drive traffic. The holy grail for convenience retailers and travel centers of all shapes and sizes is building a restaurant business. The vision is to create a customer destination that helps stem the tide from the loss of gasoline and diesel sales. Foxtrot’s young brand image, fresh food and beverages, and compelling multi-daypart merchandise section is a winner.
- Foxtrot now has a do-over opportunity. Like most turnaround stories, I bet they have learned much to improve sales and profitability without impacting the customer experience: Expanded hot and cold made-to-order beverages, inclusion of must-have mainstream grocery and convenience merchandise, and improving seasonal relevance. The concept has lower overheads, less shrink, better real estate selection and more.
It’s always amazing the clarity you have about how to run a profitable business following a near-death experience like bankruptcy. I’m counting on Foxtrot having figured out what is important and what is not.
All the best to Mike and his team for getting back into business. I am rooting for you!
Polly Flinn is founder of Flinnstone Strategies. She support retailers in rethinking their growth and business strategies as well as creating new retail concepts and formats to win with their customers. Contact Polly at polly@flinnstonestrategies.com to find out more.
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