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Convenience store “Foxtrot” and its business points


Foxtrot, a convenience store that continues to expand its business in the United States, raised $ 17 million in growth funds on February 5, 2020, and is attracting attention again.

Foxtrot has succeeded in retaining customers with services centered on e-commerce and physical stores as a new business model for convenience stores.


In this article, I will explain why Foxtrot is growing in the United States based on six business points, comparing the differences in the business characteristics of Japanese convenience stores and Foxtrot.

<Table of Contents>

What is “Foxtrot” that embodies the shape of a new convenience store?

Foxtrot’s 6 Featured Business Points
・Product delivery within 30 minutes of ordering
・Store receipt service within 5 minutes
・Utilization of customer data through online
・The main product is alcohol and snacks
・Abundant product lineup in collaboration with the local community
・Ingenuity in the store


“Foxtrot” embodies the shape of a new convenience store

Foxtrot is a convenience store that was born in Chicago in 2013, and operates both online and offline convenience stores. Currently, there are 7 physical stores in Chicago and 2 in Dallas.

As mentioned earlier, we succeeded in raising $ 17 million in growth funds on February 5, 2020, and will expand 50 stores nationwide, including New York, Miami, and Los Angeles, over the next two years. By announcing that, it can be said that it is a new retail company that is attracting attention again in the United States.

Foxtrot’s great strength is that you can experience both online shopping using mobile apps and shopping at physical stores, and we are strengthening omnichannel, which is rare at convenience stores. At the time of its founding, the business was developed only by online shopping, but since opening the first store in 2015, we have been utilizing the customer information acquired online and utilizing it for actual store management.

In addition, Foxtrot is not only differentiating itself from other convenience stores by specializing in online stores, but also differentiating itself from other convenience stores in the operation of physical stores. We have succeeded in accurately grasping the needs of customers and differentiating them even in physical stores.

Supplementary explanation: What is new retail?

It is a word proposed by Jack Ma, the founder of Alibaba, a global IT company in China.
It’s a business model that leverages technology and data to seamlessly blend online and offline to create a new and more satisfying customer experience.

6 Foxtrot Business Points to Watch

In this chapter, we’ll introduce you to six business points that make Foxtrot so popular and successful.

Delivery within 30 minutes of ordering

Foxtrot will deliver the item within 30 minutes of ordering. The delivery price is a flat rate of $ 5. It is characterized by fast delivery and low prices.

It can be said that these features are centered on the e-commerce business, and by expanding the delivery network, it is possible to cover one area with a small number of stores = it is possible to retain customers. Foxtrot stores are set up in densely populated residential areas, helping to expand the delivery network.


On the other hand, Japanese convenience stores have adopted the “dominant strategy” method of concentrating on a specific area and opening multiple stores to enclose customers in the entire area. While concentrating stores in a specific area has the advantage of reducing delivery costs for inventory replenishment, convenience stores may be concentrated in a specific area, and competition with other companies may become fierce.

By focusing on e-commerce, Foxtrot has succeeded in retaining a wide range of customers while minimizing the number of stores, and as a result, Foxtrot has achieved great growth as a company while suppressing the cost of operating stores. increase.

Store pick-up service within 5 minutes

Foxtrot will deliver the item within 30 minutes of ordering, but you can also pre-book online and pick it up at the store. Items ordered within 5 minutes are delivered at the store.

The store also provides a customer experience that pursues thorough customer convenience.

Leveraging customer data online

At convenience stores in Japan, it is common to collect customer data by issuing point cards. At present, it is difficult to collect all customer data because each convenience store company uses different point cards.

However, Foxtrot’s business model is premised on online purchases, making it easier to collect customer data when making online purchases. The collected customer data is used for improving the accuracy of the delivery business and for marketing measures such as sales forecasting, inventory management, product improvement, and store management.

The online business also has the advantage of facilitating the collection of detailed customer data and the ease of effective use of the data.

The main products are alcohol and snacks

The main products handled by Foxtrot are alcohol and snacks. Alcohol and snacks are in high demand and have a long best-by date, which reduces the risk of holding inventory. In addition, frequent inventory replenishment is not required, leading to a reduction in distribution costs.

In addition, we have succeeded in differentiating our products from other companies by developing products with a high rare value that can only be obtained locally and niche products. Foxtrot not only specializes in e-commerce but also differentiates itself in its products.

A wide variety of products in collaboration with the local community

Foxtrot employs community-based purchasing in collaboration with the local community to provide customers with a place to experience “discoveries.”

40% of the stock is made up of small local businesses, and most of the products are lined with good, rare, and rare local products that cannot be purchased at other stores. Customers have the opportunity to come across new products and find products that suit their food trends and tastes.

Foxtrot also acts as an incubator, allowing these local SMEs to market test while selling products under development. It can be said that Foxtrot has earned a great deal of trust from the small and medium-sized enterprises that collaborate with it because it can develop local products that customers like from the purchase data of customers.

Ingenuity in the store

Foxtrot has an e-commerce strength, but Foxtrot data show that customers spend an average of six times a month shopping in stores and using e-commerce.

Foxtrot’s new store is a convenience store, yet it has a space for eating and drinking. Based on the vast amount of customer data that has been accumulated so far, the store is designed according to the customer’s lifestyle and preferences, and the customer’s purchasing experience is realized.

For example, efforts are underway to improve the purchasing experience by starting with a cafe in the morning and running a bar in the evening to create a space where you can study and work while eating and drinking and enjoy talking with friends.


Foxtrot is a convenience store that has strengths online, but even offline, it has succeeded in making a big difference from other convenience stores and supermarkets. It can be said that the customer data accumulated through online sales is utilized in both online and offline businesses, resulting in an improved customer experience.

Foxtrot plans to expand its stores further in the future. We are already planning to open 50 new stores mainly in urban areas, so keep an eye on future developments!

If you ever want to know about similar things, check out the Facebook page Maga Techs.



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