These founders are transforming retail stores into social hubs—and it's paying off

Local businesses are the heart of their communities. And often they’re more than places to shop. They fill a need for more “third places”—public spaces to gather between home and work—where communities can find connection, learning, and collaboration.

The strength of the people that surround a business is central to its success. More than half* of aspiring entrepreneurs cite support from people around them as essential to taking the leap. And all businesses can benefit from united values and resource sharing.

But community isn’t just important to founders. Consumers increasingly seek out a sense of belonging from the brands they support. While only one in ten** consumers say this is important, the number jumps to almost one in five for buyers aged 18 to 24. 

With a decrease in businesses that encourage gathering—such as barber shops and laundromats—retail stores can fill that gap. And it’s a win-win: founders who do more than sell goods can diversify revenue streams and keep their doors open.

These “third places” are critical in bringing communities together. They offer citizens the opportunity to share a collective sense of local pride and for businesses to thrive—together.

The return of third places

Brick and mortar stores will “continue their rebirth” this year, predicts the National Retail Federation. Still, rising costs are affecting retail business owners everywhere. For London Terrariums owner Emma Sibley, product sales alone wouldn’t be enough to cover her store’s expenses. Before she moved to her current retail location, Emma was already in the business of making connections through workshops she hosted in her tiny studio or in borrowed spaces.

Today, those workshops are hosted in her East London storefront, making up as much as 75% of her revenue. “I wouldn't still be here if I was just relying on retail sales,” Emma says. But the workshops do more than keep the business running. They are essential to the experience.

The joy of terrariums comes as much from the finished product as seeing them come to life through terrarium-making classes. Emma helps urban Londoners connect with nature after their 9-to-5 jobs. And the euphoria is contagious. The business often gets requests to host corporate parties. 

In rural Maine, another business is benefitting from opening its doors to the community. Grain Surfboards is celebrating 20 years in business this year, thanks in part to the strong social ties. 

Grain sells kits customers use to build boards at home, and they take custom orders. But the real magic happens in one of its two in-store workshops where participants build boards together. And those students aren’t just locals. “We've had people from Tasmania, New Zealand, Brazil, and Croatia,” says Grain’s head of marketing and creative director, Allie Wormel. 

And back in the UK, Bravery founder Toby Gutteridge found a way to marry his past with his future. The former member of the UK Special Forces opens his hybrid retail store, café, and coworking space to veterans one Monday a month. “We have professionals come in so they can talk to people if they're struggling. It helps build that community,” he says.

Like London Terrariums, Bravery’s hybrid approach helps the brand maintain a retail hub while offsetting costs. “The space was far too big for just our company. We thought, ‘How are we going to afford to keep it going?’” says Toby. Beyond financial benefits, giving people a space to gather has been meaningful to an extreme sports brand that’s all about experience.

A rising tide

Creating community around your brand not only gives customers a sense of belonging. It can also expose your business to opportunities to collaborate. For example, the world’s biggest companies often team up with the latest blockbuster releases (think luggage brand Béis’ Wicked collection)—collabs that drive consumer awareness and sales for both partners.

Smaller brands can also benefit from partnership opportunities. Grain Surfboards’ annual event Surf Re-Evolution is one such example. Every September, the brand invites artists, musicians, and food trucks to participate in the event that draws attendees across a diverse range of interests. 

Day to day, partnerships allow Grain to offer more to their students and customers. “We've partnered with Finisterre to have some wet suits available to anybody who wants to come try out surfing,” says Allie. Surf Re-Evolution has spun into a mini-series, too. Grain invites experts from various related fields to speak or demo in its barn. “It's become a pretty buzzin' place.”

Emma’s workshops drove exposure for London Terrariums that ultimately led to being approached for collabs with major brands like Adidas, Chase Spirits, and the V&A Museum. “Actually being able to see our terrariums in the V&A was just like, ‘Wow.’ It’s amazing that this business brought me here,” she says.

Retail reimagined

Retailers have proved to be a resilient bunch, overcoming the challenges that have affected their businesses in the past few years. From expanding sales channels to finding ways to connect with community under lockdown, many have weathered the storm. 

Hybrid and shared retail spaces play an important post-pandemic role. With the appetite for great in-store shopping experiences staying strong, brands offering more than products stand to attract new customers and plant community roots that will help them grow.

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*Results for the Gallup entrepreneur poll are based on responses from a survey of 46,993 U.S. adults (18+ years old) conducted online May 1-14, 2024. All participants are members of Gallup’s probability-based, nationally representative panel. 

**Survey conducted among 18,000 consumers in Australia, Canada, France, Germany, Italy, Japan, Spain, the UK, and the US. The interviews were conducted online by Sapio Research in August 2024 using an email invitation and an online survey.