The growing demand for retail stores to deliver ‘third space’ environments, which seamlessly combine community and commerce, is being driven by Millennials, according to new figures from the Retail Technology Show (RTS).  

Bending community & commerce

Six in ten (57%) of Millennials now want physical retail experiences to blend community, socialising and shopping, according to its original research of over 1,000 shoppers. 

With 78% of Millennials prioritising experience spend over buying physical items, a further quarter (24%) of Millennials polled by RTS now want immersive brand experiences built into store shopping journeys, +10 percentage points higher than shoppers of all ages.

Digital fatigue and community fragmentation

Amid digital fatigue, community fragmentation and the rise of remote working, demand for third spaces – environments that sit between home and work – is growing. 

A third of consumers say they now discover retailers through brand-community platforms and value-aligned interactions – and this is evolving the role of traditional stores.  Transitioning away from purely transactional arenas, these new third space experience hubs support connection and deeper levels of brand engagement.  

Last year, for example, Superdrug said it would open 30 new ‘beauty playgrounds’ which would act as experiential discovery centres for customers to explore new beauty trends.  Meanwhile, performance cycle brand, Rapha, has long been known for its ‘Clubhouses’ which combine retail, cycle cafés and event hubs for its Rapha Cycling Club (RCC) members.   

A shift towards spaces for connection

“Experience-led retail isn’t a new concept, but the shift towards brand spaces for connection – not just commerce – charts a new course for how retailers can show up meaningfully within their communities,” Matt Bradley, Founder & Event Director of RTS, commented. 

“Consumers want to feel their relationships with retailers go beyond buying, so finding new formats that foster that deep sense of connection will redefine how stores of the future evolve.”

Sarah Boyd, MD of community-led cult beauty retailer Sephora UK, is confirmed to headline at RTS 2026, which returns to London’s ExCeL this week on 22 & 23 April.  Speaking on Day 1 (11.40am, Spark Stage), Boyd will share the inside track on Sephora’s explosive growth, from store expansion to viral social hype, and how it is putting community-first retail at the heart of its scaling ambitions.

Boyd joins fellow headliners, including M&S Chairman Archie Norman, TALA Founder Grace Beverley and Dragon’s Den star Touker Suleyman, who take to the stage at RTS to discuss retail’s hottest topics.  During the two-day event, more than 125 of retail’s brightest minds, including leaders from Currys, Aroma Zone, the BRC and Frasers Group, will join six dedicated RTS conference tracks offering sector-shaping insight.

To register to attend RTS 2026: https://www.retailtechnologyshow.com.