The number of coronavirus infections in the United States is currently at record levels. Simultaneously, online shopping continues to grow significantly. Despite this, b8ta, a San Francisco-based company focused on the future of brick-and-mortar retail, is expanding its physical store presence.

B8ta provides brands seeking a physical retail location with opportunities to showcase innovative digital products, ranging from electric skateboards to unique coffee-related devices. The company has now acquired Re:store, a similarly focused company supporting direct-to-consumer brands, which is just over a year old.

Re:store, which receives backing from Sequoia and SPC, operates a three-story retail space on Maiden Lane in San Francisco. This location features a variety of products, including beauty items, consumer electronics, and lifestyle goods, and also incorporates a community co-working area.

“The current situation has highlighted the importance of brands being adaptable with their product offerings and distribution methods,” explains Selene Cruz, CEO of Re:store. “Certain products are performing well during this period, and a retail-as-a-service approach allows brands to adjust their selections more quickly than the traditional wholesale model, which is often constrained by fixed buying cycles.”

Startups that rely heavily on in-person interaction are anticipated to face challenges as increasing infection rates pose a threat to the global economy. However, this acquisition demonstrates that both b8ta and Re:store maintain a positive outlook on the long-term viability of in-person shopping.

Indeed, earlier in the year, in March, b8ta’s CEO and co-founder, Vibhu Norby, published a detailed series of posts on Twitter advocating for keeping the company’s stores open. He explained that closures would result in substantial financial losses and necessitate sending a large number of employees home. B8ta’s core business model centers around providing hands-on experiences, allowing customers to try and interact with products before making a purchase.

“It feels as though we’ve experienced several years’ worth of change since I initially shared those thoughts in March,” Norby stated, acknowledging that the past year has been “exceptionally challenging” for the company. Nevertheless, the Re:store acquisition follows a period of renewed momentum since b8ta was able to reopen its stores safely in May.

“We introduced more brands in the last quarter than in any previous period in our history,” Norby said. “The conventional retail and real estate landscapes have undergone a significant shift, and brands are actively seeking alternative solutions.” It is worth noting that Macy’s, an investor in b8ta, recently avoided bankruptcy by securing a $4.5 billion financial package to offset declining sales.

B8ta’s acquisition of Re:store reflects a resurgence in physical retail, one that prioritizes immersive experiences over traditional aisles of merchandise. This emphasis on innovative in-person experiences, as opposed to conventional department stores, is an acceleration of a trend that was already underway before the pandemic. As direct-to-consumer investors indicated in late March, companies cannot rely on a limited number of customer acquisition channels. With increasing competition, brands are looking for ways to differentiate themselves, and stores like b8ta and Re:store can potentially assist them in achieving this.

While expressing optimism, Norby also noted that “while foot traffic in stores has decreased significantly, sales have nearly returned to pre-pandemic levels.” This suggests that consumers are still purchasing b8ta products through online channels, even without a physical store visit, indicating that online platforms remain a preferred option for many.