What: Private member clubs are emerging as the next-generation department store, driving traffic and engagement in luxury retail through exclusivity, hospitality, and experiential programming.

Why it is important: The rise of member clubs reflects the growing demand for personalized, status-driven experiences, making them a key lever for customer retention and competitive advantage in luxury retail.

Luxury retailers and shopping districts are increasingly launching private membership clubs to attract and retain high-net-worth shoppers, offering exclusive access to curated experiences, hospitality, and community. These clubs—such as The Moore Club in Miami, Kith Ivy in New York, and Selfridges’ upcoming 40 Duke in London—are being positioned as the next-generation department store, with landlords and brands designing tenant mixes and retail ecosystems around members-only spaces. Research shows that 86% of affluent consumers participate in at least one membership program, with higher engagement and redemption rates than other income brackets. For luxury consumers, exclusivity and community have become new forms of currency, with clubs providing both status and a private escape from the public sphere. Successful programs balance public-facing elements like restaurants and galleries with private, members-only areas, creating aspirational yet functional spaces that drive reliable engagement and repeat visits. This trend is reshaping the luxury retail landscape, as brands and landlords seek to create differentiated, high-value experiences that foster loyalty and competitive advantage.

IADS Notes: The rise of private membership clubs in luxury retail, as highlighted by Inside Retail in September 2025, reflects a broader industry shift toward experiential, community-driven engagement and exclusive loyalty strategies . Selfridges’ launch of its 40 Duke members club, covered by Retail Gazette and BoF in June 2025, exemplifies how department stores are converting prime real estate into hospitality-driven venues to attract high-net-worth individuals and create new revenue streams . Fashion Network in October 2024 and Inside Retail in May 2025 discussed how luxury brands and retailers are investing in exclusivity, tailored loyalty programs, and community-building to deepen relationships with affluent consumers . Fashion Network and Vogue Business in May 2025 noted the competitive advantage of blending retail, wellness, and social status through “third spaces” and exclusive experiences . Finally, Inside Retail in September 2025 and Forbes in April 2025 highlighted research showing that affluent consumers highly value membership programs, with exclusivity and community engagement driving loyalty and spend . Collectively, these developments show that private clubs are becoming a key strategy for luxury retailers and landlords to drive traffic, foster loyalty, and create differentiated, high-value experiences in a competitive market.

Why high-end retail players are embracing private member clubs