Foxtrot and Dom’s Kitchen & Market, two Chicago-based companies whose grocery stores combine the appeal of convenience shopping with dining and socializing at a cafe, said Monday they have agreed to merge.
They will join under a new company, Outfox Hospitality, in a deal expected to close by year-end. Financial terms were not announced.
Foxtrot CEO Liz Williams will take the top operational role at Outfox. Dom’s CEO Don Fitzgerald will continue through a transition period.
Both have smaller store formats compared with mass-market grocers. With locations in upscale neighborhoods, they carry curated selections and emphasize online orders for pickup or delivery.
Williams said in a statement that the two companies “share a common mission of modernizing the way people shop. Merging our two brands will elevate the experience for our customers and move the retail industry forward.”
Dom’s co-founder and co-Chairman Bob Mariano will be an adviser and board member in the new company. The former head of Dominick’s founded the Mariano’s chain when he was chairman of Roundy’s. His eponymous grocery stores are now part of Kroger.
Foxtrot is the smaller of the two concepts, with its stores running 1,800 to 4,000 square feet, according to the company. With more grocery items, Dom’s said its outlets range from 17,000 to 25,000 square feet.
Mike LaVitola, co-founder of Foxtrot, and Jay Owen, Dom’s co-founder and co-chairman, also will stay on in adviser and board roles.
Dom’s has stores at 2730 N. Halsted St. and 1233 N. Wells St., with plans for a third at 30 W. Huron St. opening next summer. Foxtrot has 15 locations in Chicago and 17 stores across Dallas and Austin, Texas, and Washington, D.C.
Owen said Dom’s has long admired the Foxtrot brand as a market disrupter. “Our shared vision centers on bringing the convenience of a market together with the experience of a restaurant into hospitable spaces that are destinations in the communities we serve. We do this by curating high-quality goods, preparing expertly crafted meals, and delivering warm and friendly service,” Owen said.
The separate brand names will be kept and Foxtrot specialties will pop up in Dom’s stores, the companies said.
They said that with both headquarters in Chicago, they can employ economies of scale.
Williams said, “In addition to our markets, our cafe and coffee businesses are at the heart of our stores and we look forward to continued growth through our partnership.”
