Stockbox Neighborhood Grocery
Stockbox is the new neighborhood grocery for the changing urban market.
Stockbox is a micro grocery store for the changing urban market. Our small-format stores are placed inside the community; inventory is curated to serve daily needs, and programs are designed around customer learning and community connections, making us agile against larger competitors. We are doing this every day at our Seattle store and are now building a network of stores across the city and beyond, in order to improve access to good food inside urban neighborhoods.
PROBLEM & MARKET
Most US cities are rapidly urbanizing, while residents are seeking ways to build a lifestyle that is designed around their neighborhood – walkable, focused on fresh foods and meals, and scaled to the community experience. But the current urban design can’t deliver on one of their most basic needs - fresh food. In fact, 70% of Seattle does not have access to a grocery store within walking distance of their home. The result is an underserved market of $1.6 billion in Seattle alone. And studies suggest that 21 of America's largest cities face similar need and potential.
THE STOCKBOX SOLUTION
Stockbox fills the urban grocery gap by breaking open the urban market. Our small format stores reach the last mile of the urban market with a walkable destination. Inventory is focused on the fresh food we buy most often – like produce, dairy, meats, and meals. And we integrate customer learning and authentic community connections by working with customers to select inventory, hiring from the neighborhood, and using technology to personalize the shopping experience.
We have demonstrated a viable model that can grow and scale. We’re currently hitting gross margins of 34% and can gain further efficiencies as we grow because of our drilled down approach. We drive traffic across multiple touch points - customers sometimes come in several times a day to grab a quick meal, stock up on snacks, and then fill up on groceries. We maintain perpetual inventory and reduce overhead. And we offer a curated inventory that focuses on the most profitable inventory in the store: fresh foods with the highest volume and turn rates.
BUILDING A NETWORK
We can build 10-15 stores across the Seattle region, with similar potential in many U.S. cities. The Series A investment will enable us to get to initial scale with two more stores; data-based services such as subscriptions, delivery, and more robust customer loyalty programs, and add new product stations within the stores. Ultimately, the investment also enables us to cover headquarters costs and sustain enough profit to fund future development by 2020. Within 5 years, we can build 8 stores in the region and begin reaching into other urban markets.