Stephan Schambach Launches NewStore, Secures $38 Million in Funding, and Signs Leading Luxury Fashion Brands
Schambach’s third major ecommerce venture taps $600B mobile market
September 30, 2015
Boston, MA – September 30, 2015 – NewStore, Inc. establishes the definitive Mobile Retail Platform. As the future of retail shifts to mobile, brands struggle to maintain a profitable omnichannel presence. NewStore solves this issue by introducing a groundbreaking, high-conversion mobile commerce solution that unifies offline and online buying experiences. The company was founded by Stephan Schambach, an early ecommerce pioneer and founder of Demandware and Intershop. Including investments from Schambach and the NewStore management team, NewStore has raised $38 million, with General Catalyst Partners as the lead investor.
Brick-and-mortar retailers and brands face fundamental challenges as the rapidly growing mobile commerce market evolves: (1) Mobile conversion is only a fourth of desktop web browsing, (2) online and offline commerce are still fundamentally at odds, (3) Amazon has a virtual monopoly on convenience, and (4) mobile offers new forms of engagement that retailers have yet to leverage. Rather than retrofit legacy systems to address these issues, NewStore has built a commerce platform from the ground up, focused on mobile first.
The NewStore Mobile Retail Platform creates a cloud- and mobile-based innovation layer that elegantly integrates stores’ existing ecommerce platforms such as Demandware, as well as ERP systems, without requiring major retooling at the backend. NewStore helps brands create closer, more profitable relationships with consumers through its platform that allows brands to provide unrivaled mobile convenience, foster deep consumer engagement, and boost sales.
“Retailers have seen an increase in mobile traffic, yet conversion rates remain low. This means mobile has untapped potential for retailers, and that’s where NewStore comes in,” said Stephan Schambach, Founder and CEO, NewStore. “As a serial entrepreneur who has capitalized on the major turning points in ecommerce, it’s clear to me that mobile represents the next major inflection point. What’s more, mobile is the only way to truly master omnichannel. The combination of mobile and omnichannel into a single, powerful, and customizable retail platform will shatter expectations for mobile commerce, making mobile shopping apps more popular than traditional ecommerce websites.”
LLX Global Business Services SA, part of JAB Holding S.a.r.l. and provider of business services to JAB brands Jimmy Choo, Bally, and Belstaff, is the first NewStore customer. “As part of larger efforts to enhance the consumer experience, we’re adopting the NewStore ‘mobile-first’ approach,” said Mark West, CEO of LLX Global Business Services SA “The NewStore Mobile Retail Platform helps us focus on accelerating revenue growth through brand desirability and unparalleled consumer convenience. It addresses the most substantial issue facing luxury retailers today: meeting the needs of demanding mobile consumers.”
Mobile consumers expect the ability to purchase anything, anywhere and at any time. NewStore is helping brands get their apps into the consumer’s pocket and break the boundaries of offline and online. By transforming today’s linear commerce experience, the NewStore platform reimagines the buyer’s journey as borderless, in which personalized, instant gratification is possible with one single touch.
“Looking at the NewStore model and its Mobile Retail Platform, there is no direct competition in the market. There are piece-players making attempts to address the mobile paradigm shift for retail, but no one has yet tied it all together as Stephan has done with NewStore,” said Larry Bohn, General Partner at General Catalyst Partners and Board Member, NewStore. “We’ve worked closely with Stephan as he brought his vision to life at Demandware, and from our unique vantage point, he is ready to reinvent an industry once again with NewStore.”
“The share of purchases initiated or influenced by mobile devices is growing in tandem with skyrocketing usage. Yet, the majority of mobile browsers fail to convert on the spot, due to a dearth of seamless mobile checkout solutions,” said Scott Galloway, Founder and Chairman, L2 and Board Member, NewStore. “NewStore eases the last part of that shopping journey and unifies it with the rest, fostering brand engagement and loyalty.”
Join Stephan Schambach for a webinar on October 27 where he will share how to future proof your brand against disrupting retail trends. Register here. Meet Schambach at the Shop.org conference – NewStore will be in booth #863.
NewStore provides the only mobile retail platform that boosts conversion, promotes engagement, unifies online and offline, and modernizes fulfillment. Working as a Demandware Link Partner and in conjunction with existing ecommerce platforms, NewStore allows brands to deliver a mobile-first retail experience designed around how consumers want to buy today — anywhere, anytime, with single touch simplicity. Founded by Stephan Schambach, creator of Intershop and Demandware, NewStore is headquartered in Boston. For more information, visit www.newstore.com.
Director of Corporate Communications, NewStore