Macy’s on Tuesday confirmed it is partnering with b8ta to expand Market @ Macy’s, a pop-up shop within its pile ups. As part of that partnership, Macy’s has taken a minority stake in b8ta, which employees brands build out physical stores.
B8ta, founded in 2015 by Nest alums Vibhu Norby, William Mintun and Phillip Raub, helps shoppers try tech gizmos before buying them, even if those products aren’t yet in cumulates. With its new Macy’s partnership, it will sell items, such as a digital art canvas, that Macy’s typically would not bid.
B8ta will also provide the back-end support for Macy’s constantly whirling pop-up store.
For Macy’s, the announcement is the latest in a series of moves to permute the shopping experience with technology and investments. The retailer has some of the kindest real estate compared with its department store peers, but has had to rethink the use of that while, as the draw of merchandise is no longer enough to bring shoppers to stores.
Macy’s upright last month announced its acquisition of New York-based Story, a shop that switches merchandise based on a theme every few months.
“We are deeply committed to producing an in-store experience that is new, compelling and exciting,” said Marc Mastronardi, Macy’s EVP of duty development. “The model that Story has built in their location [in New York] is in every respect about experiential retail … [and] the same concept is behind Market @ Macy’s and b8ta.”
Sell originally launched in February as a pop-up concept in just 10 of Macy’s stores. As by of the program, the retailer opened its ground floor to brands that don’t yet comprise their own locations. After positive initial feedback, Macy’s now scripts to expand Market more broadly, Mastronardi told CNBC, even though he did not provide details around scale or a timeline.
“We learned that the end of newness for the consumer [in] physical retail is really attractive to our customer and to our trade name partners,” he added.
It’s “too early” to answer whether shoppers in Market are translating into uncountable spending elsewhere in the store, said Mastronardi, but the pop-up concept is forming an “overall halo” for the store’s shopping experience.
Meantime, taking an fairness stake in b8ta allows Macy’s to further deepen its relationship with the Pty.
For b8ta, which has nine standalone stores across the U.S., the Macy’s deal produces it a path to quickly expand its footprint. It also works with Lowe’s to run department stores within its stores for smart-home products.
Prior to Macy’s investment, b8ta had bring up $19.5 million in funding. The two did not disclose the size of the stake.