Retreats, resorts, residences: Why brands are investing in luxury third spaces

News
 |  
Sep 2025
 |  
Inside Retail
Save to favorites
Your item is now saved. It can take a few minutes to sync into your saved list.

What: The activewear brand Lorna Jane is evolving its business model to include experiential wellness and branded real estate, reflecting a broader shift toward lifestyle-driven retail strategies.

Why it is important: This move reflects a broader industry trend where brands are extending beyond products to create holistic platforms that blend retail, wellness, and community, setting new standards for customer experience.

Lorna Jane is redefining its brand by acquiring the Soma wellness retreat in Byron Bay, signaling a strategic evolution from pure activewear to a holistic lifestyle platform. The move allows the brand to offer immersive wellness experiences, retreats, and community-driven programs that extend its philosophy of “active living” beyond products. Soma will continue to operate under its original name, but new programs and expanded offerings will be integrated into Lorna Jane’s customer experience, providing opportunities for retreats, corporate events, and curated wellness activities. This approach aligns with a growing trend among retailers—such as Flamingo Estate, Dolce & Gabbana, and Baccarat—who are investing in branded real estate and exclusive experiences to deepen customer engagement and build aspirational communities. With the global wellness economy projected to grow at a 7.3% CAGR through 2028, Lorna Jane’s strategy positions the brand to capture new growth opportunities and set a benchmark for lifestyle-driven retail innovation.

IADS Notes:

Lorna Jane’s acquisition of the Soma wellness retreat reflects a broader industry shift toward branded real estate and experiential retail, as documented by Inside Retail (January 2025), the Los Angeles Times (March 2025), and The Robin Report (January 2025). These sources highlight how retailers are investing in “third spaces”—community-focused, experience-driven destinations such as wellness retreats, cafés, and cultural hubs—to deepen customer engagement and build brand loyalty. The trend is further supported by Vogue Business (February 2025), which notes the rapid growth of the global wellness economy and the convergence of luxury, wellness, and experiential retail. Lorna Jane’s move to integrate Soma into its brand offering mirrors strategies seen across the industry, where brands like Flamingo Estate, Dolce & Gabbana, and Baccarat are leveraging branded real estate and exclusive experiences to create aspiration, community, and differentiation. Collectively, these developments show that the future of retail lies in holistic lifestyle platforms that blend products, environments, and experiences to inspire and connect with customers on a deeper level.

Retreats, resorts, residences: Why brands are investing in luxury third spaces