Foxtrot and Dom’s announce merger
- Foxtrot Market and Dom’s Kitchen & Market plan to merge, the businesses introduced in a press launch Monday. Phrases of the deal, which is anticipated to shut by the top of 2023, weren’t disclosed.
- The 2 Chicago-based meals retail manufacturers plan to function below a brand new entity, Outfox Hospitality, after the deal closes. Foxtrot CEO Liz Williams will develop into the brand new firm’s CEO with Don Fitzgerald, Dom’s present CEO, serving as Dom’s president and chief working officer via a transition interval, per the announcement.
- The businesses stated they share a imaginative and prescient for redefining meals buying and eating experiences, noting that their mixture will additional propel their potential to supply “thoughtfully curated merchandise and experiences” to clients.
Though the 2 retailers each have comparatively small footprints — working fewer than 40 shops between them — they’ve developed reputations within the business for his or her progressive, upmarket retailer designs, carrying a curated assortment of products and specializing in foodservice.
Each corporations have additionally constructed neighborhood-focused companies designed to draw native buyers with ready meals, drinks and a curated number of groceries and different merchandise, together with domestically sourced items.
Foxtrot and Dom’s stated they plan to unite their “fan-favorite” assortments as one firm, bringing fashionable choices like Foxtrot’s gummy candies and snacks and Dom’s ready meal choices throughout the shops.
Foxtrot, which opened its first retailer in 2016, at present runs 32 areas in 4 metropolitan areas, together with Chicago; Austin, Texas; Dallas and the Washington, D.C. area. Dom’s opened its first location in 2021 in Chicago and at present has two shops within the metropolis, with a 3rd location set to open in Chicago’s River North neighborhood subsequent summer season.
For Dom’s, the cope with Foxtrot may probably present entry to markets exterior Chicago the place Foxtrot has already established a presence.
Williams stated Foxtrot plans to proceed rising Foxtrot’s cafe and low choices via the merger.
Jay Owen, Dom’s co-founder and board chair, stated in an announcement that the Chicagoland grocer has “lengthy admired” Foxtrot as an business trailblazer.
“Our shared imaginative and prescient facilities on bringing the comfort of a market along with the expertise of a restaurant into hospitable areas which might be locations within the communities we serve,” Owen stated. “We do that by curating top quality items, making ready expertly crafted meals, and delivering heat and pleasant service.”
Williams, a former prime government at Taco Bell and hairstyling firm Drybar, joined Foxtrot in June 2022 as its president and CFO. In April, Foxtrot appointed Williams as its CEO with co-founder and former CEO Mike LaVitola transferring into the chairman function.
LaVitola, Owen and Dom’s co-founder and co-chair Bob Mariano will maintain advisor and board roles inside Outfox.
In September, Fitzgerald totally stepped into the CEO function at Dom’s after serving because the grocery firm’s co-CEO since 2021. A former government of the Mariano’s grocery store chain, Fitzgerald famous in a 2021 interview with Grocery Dive that he noticed Dom’s as a method to make use of his expertise to launch a brand new enterprise.
“This was type of my ‘Final Dance’ to use all the things I realized in my profession, however nonetheless get an opportunity to attempt a startup,” he stated on the time.
The deal between Foxtrot and Dom’s marks the most recent regional grocery merger this 12 months following introduced offers between Aldi and Southeastern Grocers, Heritage Grocers Group and Texas-based grocery store chain El Rancho Supermercado, and Coborn’s and Illinois grocery chain Sullivan’s Meals.
A number of regional grocers have mixed lately in strikes that business observers say purpose to bolster their aggressive benefit in opposition to business giants like Walmart, Amazon, Goal and Kroger.
Amanda Lai of retail consulting agency McMillanDoolittle stated not too long ago that mergers can assist grocers scale quicker than by creating a brand new banner or coming into a brand new market, noting that they’re a “nice tactic” for increasing into adjoining or new markets.