New department store concept closes on more funding, to open in New York City
Neighborhood Goods is expanding its department store of the future model.
Flush with a second round of venture capital funding, the Dallas-based retail start-up announced plans to open a second location later this year, in New York City. Neighborhood Goods made its retail debut in November 2018, at Legacy West in Plano, Texas. The 14,000-sq.-ft. store houses a variety of brands, the majority of which are digitally native and new to brick-and-mortar, along with several of the company’s own retail concepts.
Neighborhood Goods’ most recent round of funding was led by previous investor Global Founders Capital, effort with participation from prior lead investor Forerunner Ventures. Others in the round are NextGen Venture Partners, Revolution's Rise of the Rest Seed Fund, Group up Ventures, Capital Factory and Michael Dubin, CEO of Dollar Shave Club. The $8.8 million brought in by the new round brings the company’s seed money total to $14.5 million.
“After investing in Neighborhood Goods’ initial seed round, we were excited by the quality of brands they began to sign, in addition to the trajectory for their first opening and beyond,” said Don Stalter, investor at Global Founders Capital. “We saw an opportunity to help Neighborhood Goods accelerate through their launch and, now, we’re very proud to see the opportunities unfolding in front of them for new brands, new locations, and more.”
Neighborhood Goods makes it easy for brands to set up shop and rotate in and out, offering a variety of leasing options. Its first wave of retailers at Legacy West ranged from hot sneaker company Stadium Goods to Reese Witherspoon’s Southern-inspired lifestyle brand Draper James to apparel line Serena, from tennis legend Serena Williams. The company’s own retail concepts included the Residency, a collection of products from new, local, and pilot brands, and the Gift Guide, a dedicated space for giftable goods selected for the holidays in partnership. Prim & Proper, an on-site restaurant created in partnership with Front Burner Restaurants, is at the heart of the store.
“Since we announced Neighborhood Goods last spring, we’ve been fortunate, probably undeservedly so, to be subject to a significant amount of excitement about — and interest in — our concept,” said Matt Alexander, co-founder and CEO of Neighborhood Goods. “As a reflection of that, in the fall, ahead of our launch, our investors saw an opportunity to capitalize on that excitement and to accelerate our expansion plans for 2019 by driving additional seed funding.”