There could be a changing of the guard when it comes to what retail can be found in Chicago's most prominent shopping areas.
After landing a $50 million Series B round last year, Leap, a startup that helps e-commerce brands launch physical retail stores, announced another $15 million capital raise this week.
And with big brands like AT&T and Verizon deciding to leave Chicago's Magnificent Mile, Leap's recent success could be a sign that there's a growing appetite for fresh faces in retail.
Leap's fundraise was led by existing investors BAM Elevate and Costanoa Ventures with participation from Equal Ventures, Hyde Park Ventures and others.
The startup, co-headquartered in Chicago, has reportedly more than doubled its network size and revenue since its Series B financing last January with more than 50 brands using the platform to power more than 100 stores across 11 markets.
Among them is Collars & Co., a men's fashion brand that earlier this month opened its first retail store along Michigan Avenue.
While Justin Baer, founder of Collars & Co., knows it will be an "up and down ride" to start, he's bullish on Chicago long-term.
The clothing store, which specializes in comfortable dress shirts, did an analysis with Leap on where its customers live. After finding that Chicago was one of its top two places, the company decided to open its first brick-and-mortar store on one of the most famous shopping blocks in the country.
Collars & Co. partnered with Leap to open the store and help with real estate selection, store design, staffing and the overall management of the store.
The store opened July 9 in The Shops at North Bridge along Michigan Avenue, an area that still hasn't returned to its pre-pandemic activity levels.
Baer, however, is betting that consumers still want to touch and feel the brand and products.
"I obviously saw some of the large retailers leave in the last few years, but you have some other really interesting, newer brands popping up and taking over those spaces," Baer said. "Chicago has obviously had a tough time the last few years, but when we did our own personal checks around the area, we are hearing from other stores that things are definitely coming back and that they've been crushing it as of late. I expect to see Chicago turn around fairly quickly."
