JackBe, a startup that exclusively focuses on in-store pickup, has just opened its first location in Oklahoma City and raised $11.5 million in funding to further its expansion plans. Despite the challenges faced by other pickup-only stores, the company aims to use the funds to open two more locations in Oklahoma City and eventually expand to additional communities.
As consumers prioritize in-store shopping, JackBe’s pickup-only model is designed to cater to a different market segment. Moreover, the startup guarantees no product substitutions, which has been a significant issue for online shoppers. According to the company, 55% of early customers returned for more shopping, indicating a strong customer base.
The success of “Click and Collect” in the UK, where the market was worth £9.6 billion in 2021, with a predicted growth of 45.8% between 2020 and 2025, suggests the potential for pickup-only models. As many as 46% of UK shoppers used this service in 2021, indicating a viable market for pickup-only stores.
However, the competitive landscape remains a challenge for JackBe and other pickup-only startups. As e-commerce demand decreases, mainstream grocers and discount players continue to pose an uphill battle. Additionally, inflation-weary shoppers prioritize low prices, which could be a significant challenge for pickup-only stores.
In conclusion, while JackBe’s recent funding success offers some promise in the pickup-only model, it remains to be seen whether the company can thrive in a post-pandemic world with evolving consumer preferences. By considering the success of “Click and Collect” in the UK and addressing the competitive landscape’s challenges, JackBe may find ways to grow and develop in the future.