In the crowded and constantly evolving retail tech space, one company is carving out its own niche and focusing on an overlooked segment of the market: independent retailers. TrackFly, a recent addition to the 2024 Stage 2 Capital Catalyst program, is on a mission to change the way small businesses operate by providing them with the same level of data and intelligence that large (enterprise) retailers enjoy. Beyond that, TrackFly is also helping brands gain insights, increase sales, and better serve customers in a previously overlooked segment of the market, allowing them to better understand and serve these independent businesses.

Solving the Data Gap: How TrackFly Helps Independent Retailers and Brands Make Better Decisions

The story of TrackFly begins with its founder and CEO, Stephen Baird, whose background in enterprise tech led him to an unexpected epiphany. "A few years ago, I was working with a company that set up enterprise data exchange feeds for enterprise retailers," Stephen recalls. "I found myself in my local fly fishing shop, and I started to realize these independent retailers are trying to make the same decisions that enterprise retailers like Walmart are making, but as a single, independent retailer, you don't have the means, nor the ability to get that level of insight."

This realization sparked an obsession for Stephen. He began visiting local retailers in every city he visited, from surf shops to ski stores, talking to owners and understanding their challenges. What he discovered was a feeling among business owners that they couldn’t do much to change their situation. "There was such a sentiment of, ‘we just have to do what we do, because we're kind of on our own,’" Stephen explains. Independent retailers often have the mindset of, "we're competing with our brands because they're selling direct-to-consumer or because they’re growing their presence on Amazon, and we’re left to fend for ourselves."

How TrackFly’s Technology Works

On one side, while independent retailers have access to their own store's sales data, they often are missing broader industry benchmarking tools needed to make informed decisions about inventory and sales strategies. On the other side, major brands are missing crucial data from a significant portion of their sales channels. Surprisingly, independent retailers can represent a staggering 60-65% of revenue for many major brands, yet this channel has been largely overlooked in terms of technological innovation.

Surprisingly, independent retailers can represent a staggering 60-65% of revenue for many major brands, yet this channel has been largely overlooked in terms of technological innovation.

How does it work? TrackFly's solution integrates with independent retailers' point-of-sale systems, pulling in sales and inventory data. This data is then processed using machine learning algorithms to standardize and aggregate it, creating an anonymized, industry-wide dataset that retailers and brands can use to make decisions. 

For example, imagine a retailer trying to decide how to spend $10,000 on their next order. They could look at what’s been selling in their own store, but that $10,000 stretches a lot further with TrackFly’s insights. TrackFly provides visibility into trends beyond their own walls, allowing them to see what’s selling across the market. Maybe sleeping bags are trending up, and with TrackFly’s data, the retailer can now understand that they should invest in a few more for their shelves because consumers are increasingly purchasing them. This level of market visibility, which has previously been out of reach for a single-location store, allows the retailer to make smarter, more profitable decisions.

Brad Duncan, Chief Product Officer at TrackFly, explains why this matters: "Retailers can now benchmark their performance against industry trends, make more informed inventory decisions, and optimize their purchasing strategies. We believe that even if you have one small surf shop on Cocoa Beach in Florida, you should have the same level of intelligence when you're trying to figure out which products to carry as Dick's Sporting Goods has, or as Walmart has."

But the benefits don't stop with the retailers. Brands also gain significant advantages from TrackFly's platform. For the first time, they can access real-time sales and inventory data for their brand’s products in their independent retail channel. This visibility unlocks targeted forecasting, efficient supply chain management, and improved marketing campaigns, which all equals more product sold and happier customers.

The Catalyst Program: How TrackFly is Using Stage 2 Capital’s Expertise to Scale

TrackFly's unique approach to solving long-standing issues in the retail supply chain is one of the reasons they have been accepted into the 2024 Stage 2 Capital Catalyst program. Stephen shared his enthusiasm for the program, "We were thrilled to be accepted, especially with Stage 2’s strong focus on GTM. As a team of technologists and data experts, we knew we’d benefit from their expertise. Even just a few weeks in, we've already fully embraced their principles, and it's already impacting our GTM approach."

The team at TrackFly has clear goals for what they hope to achieve through the program. Brad explains, "I think it really comes down to how we can very clearly articulate our message and value to the market. We’re a novel product, so getting in front of the right people with the right message is incredibly important right now to ensure awareness of TrackFly across our prospective brand customers."

Stephen clarifies this crucial objective: creating inbound demand. "Now it's time to initiate the other side of sales and marketing, which is simply brands and their retailers knowing that a solution now exists and coming to us. This is another big aspect that we're excited about with this program. Working with the Stage 2 Limited Partner network is extremely valuable, and their expertise and depth of experience will help us refine our GTM strategy and build connections with key players in the market."

Stephen sums up the company's mission passionately: "We obsess about independent retailers, and aim to emphasize their place in the supply chain. We obsess about seeing them have the innovative technology to grow and to succeed into the future. Let's take this massive market that's out there, connect them together, and really see it thrive and grow."

We’re excited to welcome TrackFly to the 2024 Catalyst Cohort!