Could a place for people to spend time away from work, school or home be the missing piece of the retail puzzle? Zach Edwards asks the question…
If you’ve seen an episode of Friends, Seinfeld or How I Met Your Mother, you’ll notice most scenes occur in a space other than the main characters’ homes or workplaces.
In cafés, bars and diners, friendships are made and bonds strengthened as the most impactful memories of the characters’ lives unfold in this so-called ‘third place’.
It’s a concept sociologist Ray Oldenburg identified in 1989 and it speaks to a physical location where people can belong – outside of home, school or work.
This ‘third place’ is fundamental to human development and connection, satisfying our primal need for community, relationships and more.
With retailers searching for ways to authentically connect with their customers, conjure a sense of magic and inspiration and develop loyalty and trust, a third place could be the missing piece of the retail experience.
Why not build something real that reaches the depths of the human spirit?
Bringing the ‘third place’ to life
Successful ‘third places’ need to be relaxed, informal and authentic. They can facilitate activity or nothing at all – the option for people to do as much or as little as they want.
They should offer room for true randomness – spontaneous interactions, and interesting conversations with people who have different perspectives and ideas. All the things that make life so weird, wonderful and exciting.
Experiential retail environments that tap into this ‘third place’ are already taking off in countries like China and the US where there is a demand for physical connection and more spaces that facilitate it.
Bandit – a running apparel company from New York – recently opened The Running Room. It’s a part-retail experience, part café, part-community centre. AKA: a ‘third place’.
They’ve taken everything their customers love about the brand and solidified it in a physical location. A space where runners of all kinds can congregate and share a drink. It’s a meeting place, a destination.
The Running Room grew out of a genuine customer need. New York runners wanted a space to meet before and after their social run clubs. They desired a coffee spot where they wouldn’t have to worry about being sweaty; a community hub designed by runners, for runners – a place they felt at home, where they could talk about running. A place that would become cemented in their routines.
By creating this ‘third place’ runners of all abilities can enjoy, Bandit is breaking down walls to encourage genuine connection – between customers and with the brand. The hangout space doubles as a retail store and while there’s no pressure to purchase, it’s an effective strategy to bump incidental sales.
Similarly, Urban Outfitters has Space Ninety 8 in Brooklyn – a concept store featuring market pop-ups, a gallery, food and cocktails, and plenty of space to hang out. Elsewhere in the US, Choice Market in Denver offers a modern take on the convenience store/hybrid supermarket and café.
Meanwhile, in China, Canadian ski wear brand Arc’teryx has created a store at Jilin Beidahu Ski Resort – a symbolic ‘campfire in the snow’ – with space to rest, sit by the fire, and catch up with friends. And then there’s Sixty-Six, a surf/skate store in Shenzhen with a pump track and coffee bar.
Unlike pop-up shops, these spaces are permanent with the focus less on the retail component and more on creating a place to bring people together.
The opportunity for an Australian ‘third place’
Culturally, the Aussie desire for connection is not dissimilar. So why aren’t more brands focussing on in-person experiences like these? It’s a missed opportunity, especially given the impact creating a third space could have on brand loyalty and affinity.
Kathmandu, for example, could create an inner-city climbing gym or a reading room full of travel and adventure books – a place where people come to gather and potentially buy Kathmandu gear while they’re there.
Similarly, Adairs could own a rest and relaxation hub for shoppers to put their feet up and chill – and perhaps take home a cushion like the one they were resting on.
Social environments for customers to enjoy and feel comfortable exponentially increase the perceived value of a brand. Retail-based ‘third places’ that prioritise customers will see massive returns in terms of trust and commitment.
And don’t underestimate satisfaction and enjoyment as powerful tools to retain and engage. We are all searching for entertainment, fun and joy with many top-performing brands on social media tapping into this desire. Why not bring it to life beyond the digital realm?
Creating a dedicated retail space that pushes experiential boundaries, beyond a transactional relationship between the customer and the brand, goes a long way to making that connection.
We need more ‘third places’. Call it a human right, or at the least a human requirement. People are craving it – now it’s up to the most innovative and empathetic brands to make it happen.
Originally published in Inside Retail: https://insideretail.com.au/business/creating-community-how-retail-brands-can-capitalise-on-the-third-place-202407
