RTS 2026: Millennials lead demand for third space retail baked into physical shopping experiences

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

Six in ten Millennials now want physical retail experiences to blend community, socialising and shopping, according to its survey of over 1,000 shoppers. 

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

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.   

“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,” says Matt Bradley, Founder & Event Director at RTS, comments. “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.”

RTIH at RTS 2026

Retail Technology Innovation Hub will be out in force at RTS 2026.

You will find us on stand B45, so please feel free to drop by and say hi to Editor and Founder, Scott Thompson, and fellow team members. You will also be able to pick up a free copy of the latest bumper issue of RTIH magazine.

Further details 👉 here

2026 RTIH Innovation Awards

Physical retail will be a key focus area at the 2026 RTIH Innovation Awards.

The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.