Millennials are driving demand for retailers to create ‘third space’ shopping environments, according to research from the Retail Technology Show.

A survey of more than 1,000 UK shoppers found that 57% of Millennials want stores to combine community, socialising and shopping.

The findings suggest expectations for physical retail are shifting, with stores under pressure to offer more than transactions. They also showed that 24% of Millennials want immersive brand experiences as part of the in-store journey, 10 percentage points higher than the figure across all age groups.

Retailers have already been testing formats that place greater emphasis on time spent in-store and on interaction with the brand. Last year, Superdrug announced plans to open 30 new beauty playgrounds designed as experiential discovery centres, while cycling brand Rapha has built its store model around Clubhouses that combine retail space with cafés and event hubs for its cycling club members.

The research links the trend to wider social and workplace changes, with demand for spaces between home and work rising amid digital fatigue, fragmented community life and the growth of remote working.

A third of consumers surveyed said they now discover retailers through brand-community platforms and value-aligned interactions. This points to a broader shift in how shoppers first encounter brands and how stores fit into that relationship.

For retailers, the findings add to evidence that younger consumers place greater value on experience and participation in physical spaces. The research found that 78% of Millennials prioritise spending on experiences over buying physical items.

Changing Store Role

This backdrop is pushing store design and operations away from a purely sales-led model. Physical outlets are increasingly being used as places where brands can host communities, encourage repeat visits and give shoppers reasons to stay longer.

While experience-led retail is not new, the stronger focus on community marks a more specific direction. Rather than relying solely on product displays or transactions, brands are trying to create spaces that support social interaction and a sense of belonging.

That can take many forms, from beauty testing areas and cycling cafés to venues for classes, gatherings and member-based activities. The common thread is that the store becomes part of a wider brand relationship rather than a standalone point of sale.

Matt Bradley, Founder & Event Director of the Retail Technology Show, said the findings reflect this shift in consumer expectations: “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.”

“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.”

One in five British firms have moved AI workloads out of the UK because of high power costs, according to research commissioned by CUDO Compute, adding to concerns about the country’s ability to keep more AI activity on home soil.

The survey covered more than 700 senior AI decision-makers across the UK, US and Europe, including 200 in the UK. Among UK respondents, 33% said energy costs were limiting their ability to scale AI operations, while 43% said cost and performance outweighed sovereignty when deciding where to deploy AI.

The findings suggest the UK’s push for AI sovereignty is running up against infrastructure constraints. Businesses may want to keep workloads in domestic or regional markets, but power prices, available land and access to grid capacity are proving more decisive.

Geopolitics is also shaping deployment choices. Among UK respondents, 46% said geopolitical instability was pushing them to keep AI workloads within home markets, compared with 36% across the full sample.

Even so, commercial pressures remain strong. Almost a third of UK organisations (32%) said they were actively considering relocating workloads due to geopolitical pressures, while 45% said data sovereignty, regulatory compliance, or national security concerns were shaping their AI deployment strategy. At the same time, 31% said they were prioritising sovereign or regionally controlled compute even at a higher cost.

Where Workloads Go

When asked which markets looked most attractive for new AI cluster capacity, respondents ranked the US highest, with 72% viewing it positively. India followed at 62% and Eastern Europe at 58%.

Eastern Europe ranked ahead of Western Europe at 45% and the Nordics at 44%. China scored 55%, ahead of Latin America at 40%, the Middle East at 39%, Africa at 38% and APAC at 29%.

The pressure appears sharper for businesses that depend more heavily on compute. Among AI-first businesses, 32% said they would consider moving workloads overseas because of power costs, compared with 18% of enterprise organisations.

That gap suggests companies running the most demanding AI systems may be quickest to shift work to lower-cost locations when domestic operating conditions worsen. For policymakers, it highlights the challenge of matching AI ambitions with the industrial base needed to support them.

Infrastructure Strain

The findings reflect a broader issue in the AI market: infrastructure supply is constrained not only by access to chips and software, but also by physical requirements such as land, energy, cooling and grid access. In that context, electricity costs become a central part of the cost of compute.

CUDO Compute commissioned the research with Censuswide as part of its Land. Power. Compute report. Respondents included decision-makers responsible for AI workload and infrastructure decisions, budget input, vendor selection or active deployment planning. The sample included enterprise businesses with turnover above GBP £50 million and AI-first companies with turnover above GBP £1 million.

Matt Hawkins, chief executive of CUDO Compute, said the UK risked a widening gap between policy goals and operational reality if it did not address infrastructure constraints.

“AI sovereignty is being hotly discussed as a priority for UK organisations, but it only works if the infrastructure exists to support it,” Hawkins said. “What we are seeing is a growing tension between where businesses want to run AI and where they actually can.”

“AI is not abstract software. It is physical infrastructure that depends on power, land, cooling and grid access. When those constraints tighten, economics take over. If it is cheaper or easier to run workloads elsewhere, they will move, regardless of sovereignty ambitions.”

“Right now, every UK boardroom is talking about AI, but almost nobody is talking about the infrastructure needed to power it. Until we close that gap, there will continue to be a disconnect between policy, ambition and reality. The countries that solve this first will shape the future of AI, and the UK still has a window to lead, but it needs to act quickly.”

An application has been submitted to Cherwell District Council, the planning authority, to install two Electric Vehicle (EV) charging points at Lidl, the German supermarket in Launton Road.

J Butterworth Planning and Parco Civil Engineering & Groundworks Ltd prepared the application on behalf of Lidl GB.

Proposed site plan for two new EV chargers to support four electric vehicles at Lidl in Bicester (Image: BE Utility Solutions Ltd)

The plan proposes installing two EV charger upstands and associated feeder pillar cabinet and car parking layout amendments to provide charging for four electric vehicles.

Each Terra 60 EV Charger will be capable of charging two vehicles and will be 1,210mm in width, 2,215mm in height and 656mm in depth.

Lidl in Bicester could get two new Terra 60 EV chargers to support four electric vehicles (Image: Terra)

The proposed W2 GRP Walk-In Cabinet will be 2m in width, 2m in height and 1m in depth.

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Planning permission for the 1,616sqm site was granted in 2010 and allowed for 75 car parking spaces but with the installation of two EV charging spots, there will be a loss of two spaces to 73

Lidl hosts one of the highest proportions of rapid charges in the retail sector, supporting the Governments goal of installing 300,000 public EV charge points by 2030.

Comments are due on the council’s planning portal until Friday, May 1, and a decision is expected by Friday, May 15.