11th June 2021 By Bridget O'Connell | email@example.com | @foodtickernz
Package-free grocery store GoodFor is closing in on the halfway point of its $2m capital raise target after the offer went live to the public this week.
The retailer, which was founded in 2017 when James Denton and Georgie Hendl opened their Parnell refillery, is looking for a minimum of $1.7m or an upper target of $2m to fund an upgrade and expansion of its store network and add new revenue streams to the business.
It has currently reached $876,000 according to fundraising platform Snowball Effect, with close to three weeks still to go.
GoodFor currently has a network of seven stores nationwide selling waste-free pantry and household goods. The shops attract 13,000 regular shoppers and produced annual turnover of $5.3m in the 2021 financial year, according to the company’s information memorandum.
This sees the stores, which include four in Auckland and one each in Wellington, Nelson and Christchurch, deliver average earning before tax of $122k, or up to $180k for its best performers, with an average store payback of three years.
“Since launching we have been able to achieve a CAGR of 50%, which we forecast to maintain over the next four years,” GoodFor said.
“Our current market share of the greater NZ grocery market is 0.02%, so with the tail winds of consumer trends towards sustainability there is enormous scope for growth.”
Its growth strategy would see current stores upgraded with plans to launch “a new 2.0 store, an omni-channel focused store which captures a larger audience”.
“These developments will be supported by the continued refinement and expansion of our online store,” the company said.
It also plans to plough around $300k of the capital raised into the launch of what GoodFor described as a unique range of pantry containers.
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