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Retail The third space Encounters of the retail kind An analysis of the trend for retail as the third space and what it could mean for selling beauty by Naomi Marcoulet etailers have long sought to reinvent Rshopping. But now the issue is becoming less about reinventing shopping, which is already happening in digital, and more about heightening the consumer’s experience in the physical space. The vision that retail will be a destination for experiences, known as ‘retail as the third space’, has become all the more prominent as new channels of consumption emerge. “Retail has undergone a dramatic shift in recent years, with physical shops pushed to evolve for a digital- commerce age. Online players have prompted retailers to re-think the function of physical shops, which are increasingly focused on experiences, unique environments and customer service, giving shoppers more reasons to spend time and experience the brand in these spaces,” says J Walter Thompson planning foresight director Marie Stafford. “Physical shops will increasingly offer a third space that’s only partly about selling products. The hard sell is becoming less important than providing something more fun, engaging, helpful, satisfying or distinctive,” credit: istock claims Stafford. Industry mergers The digital age is not the sole force behind at the center of it all,” comments Victoria have contact with a brand everywhere from the trend. Other industries, like entertainment Buchanan, visual trends researcher at The Future mobile sites to social media, the old retail model or travel are competing to woo and involve Laboratory. “The future of retail will be about no longer cuts it. To deal with a more complex consumers and these industries are likely to collaborating not just with your competitors, but customer journey, brands are shifting from overlap with retail. “Look to retail spaces, with industries you may never have considered product to brand experience,” says Buchanan. products, hospitality and entertainment these relevant. We’ll see brands building ecosystems Retailers that have been doing well in days and, increasingly, there’s one distinctive with partners from across other industries, selling revolutionizing the shopper experience include theme: it’s diffcult to tell one thing from the a total lifestyle, rather than just a few hand- luxury and sport brands, and of course Apple, other. It’s a trend we call The Convergence picked items from other brands.” says J Walter Thompson’s Stafford. “One of the Economy. At a typical convergence retail space, Most important is that the physical store pioneers in this space must be Apple, which has you can plan for an outdoor adventure, grab a differentiate itself by offering what cannot be developed a hugely successful template,” she coffee, get a haircut and pick up an independent offered online. “As our lives become increasingly comments. It is one example of a store that art magazine in one quick visit—perhaps not digitized we are craving experiences that cannot devotes less space to product and pure retail, even purchasing a product made by the brand be replicated online. Now that consumers can but has seen better sales as a result. n n n 72 November-December 2015 - N°24 - BW Confidential