What: Retailers are transforming stores into community-focused third places, using experiential amenities to increase dwell time and foster customer loyalty.

Why it is important: The trend demonstrates how retailers are responding to social isolation and changing consumer expectations by creating spaces that foster genuine connection.

Retailers are increasingly reimagining their stores as vibrant community hubs, moving beyond traditional commerce to create environments that encourage customers to linger, socialise, and build lasting relationships with brands. This evolution is marked by the integration of experiential amenities such as in-store cafés, free beverages, and open seating, all designed to enhance dwell time and emotional engagement. Brands like Tecovas, Coach, and Sephora are at the forefront of this movement, offering radical hospitality and interactive experiences that blur the line between shopping and socialising. Department stores and specialty retailers alike are adopting community-driven programming, from art exhibitions to wellness events, to attract diverse audiences and foster a sense of belonging. This approach not only addresses the growing issue of social isolation but also aligns with shifting consumer values, particularly among younger generations who prioritize meaningful connections over transactional interactions. As a result, success in retail is increasingly measured by the depth of community engagement and the quality of customer experiences rather than immediate sales.

IADS Notes: Throughout 2024 and 2025, the retail industry has seen a marked shift toward third spaces, with brands like Coach, Louis Vuitton, and Ralph Lauren integrating hospitality and community-focused experiences into their stores (Inside Retail, Jan 2025). Department stores such as Le Bon Marché and Printemps have prioritised dwell time and cultural programming (Forbes, Apr 2025), while retailers like Patagonia and Apple have leveraged events to combat social isolation (Inside Retail, Oct 2024). The transformation of malls into experiential venues has been documented in Santa Monica and beyond (Los Angeles Times, Mar 2025). Industry leaders at the World Retail Congress have emphasised the importance of balancing technology with authentic human connection, confirming that community engagement and experiential loyalty are now central to retail strategy (Fashion Network, May 2025).

Can a store ever be a ‘third place?’