What Retail Can Learn From Chinatown: 3 Ways to Create Thriving Third Places

Parks, libraries, beaches, gardens, community centers — between home and work, there exists a desire and need for a third place: a space away from home, away from work, and close to one’s heart. Third places, as identified by sociologist Ray Oldenburg in “The Great Good Place,” are public spaces outside of one’s home and workplace in which they can gather with others and socialize, often at little or no cost. Despite the perceived high barriers of entry, retail spaces can also fulfill this vital role.

In the heart of San Francisco, Chinatown beautifully illustrates this intersection of culture and commerce. Retail serves as the unifying element here that allows individuals to find a sense of belonging outside their home and work. The preservation and reinforcement of culture for the Chinese diaspora here fosters positive placemaking, while also enabling community members to participate in the mainstream economic sector.

So, how can other retail spaces build themselves as a third place? Looking towards San Francisco’s Chinatown as a case study, here are three key strategies to create a thriving third place:

1. Create inclusive, culturally-enriching experiences.

Throughout the year, San Francisco’s Chinatown hosts festivities in celebration of Lunar New Year, Mid-Autumn Festival, Dragon Boat Festival, and more. In fact, San Francisco’s Chinatown is home to the largest Lunar New Year parade outside of Asia, attracting thousands of people each year. In conjunction with these festivities, retail spaces come alive with in-store events, special promotions, cultural displays, and interactive experiences.

Key Takeaway: According to Gensler’s U.S. Consumer Experience Report 2024, 26% of experience-focused consumers and 13% of goods-focused are motivated by pursuing cultural enrichment. Retail spaces can establish themselves as a cultural hub by hosting or supporting events and programs that celebrate the diversity of their local communities.

These festivities and celebrations create an experiential shopping experience, promote inclusivity, and serve as a pedagogical tool by increasing cultural awareness. In this way, individuals of all backgrounds can come together to celebrate, connect, and enjoy the rich cultural traditions being shared.

2. Cultivate a social shopping destination.

In San Francisco’s Chinatown, night markets have returned and become a monthly staple with a variety of food from small eats to packed meals. Over 20 local businesses took part in 2024, with huge crowds spread over several blocks. Because of the great success of the night market, the Waverly Block Party was developed in tandem to it, featuring local AAPI musicians and artists. Together, these events are an incredible part of the community’s social fabric, offering food, entertainment, arts and crafts, all while revitalizing night life and uplifting community members.

Key Takeaway: By positioning themselves as a place for recurring events, retail spaces can transform into a vibrant community hub for people to mingle, connect, and experience new things — becoming a social shopping destination for people to return to time after time.

According to Gensler’s U.S. Consumer Experience Report 2024, 86% of respondents are motivated to engage in experiences that encourage community, socializing, and making a positive impact on others. These events not only drive business to temporary vendors and local legacy stores, but also foster collaboration between the community and retailers, thus building a strong connection between customers and business.

3. Leverage ambassadors and social media.

Since 1953, San Francisco’s Chinese Chamber of Commerce has hosted Miss Chinatown USA, a pageant that brings in delegates across the U.S. Each year, this pageant occurs alongside Lunar New Year festivities, and the winner acts as a cultural ambassador throughout the following months. Miss Chinatown USA is often seen pictured at events, visiting family associations and local businesses, and participating in community activities. She also leverages her platform to share empowering stories and significant moments through social media, thereby establishing relatability, promoting cultural pride, and connecting with the community. Her role as a cultural ambassador is key to bridging the gap between community members and local businesses.

Key Takeaway: According to Gensler’s U.S. Consumer Experience Report 2024, brands must go beyond building audiences to fostering connection. Retailers can adopt a similar strategy by establishing brand ambassadors through partnerships with content creators and local organizations to elevate their spaces beyond just shopping.

These brand ambassadors can help transform the retail space by sharing personal experiences, showcasing behind-the-scenes content, and hosting live events online. Brand ambassadors, combined with social media, foster meaningful connections with the community, enhance placemaking, and establish a sense of belonging — all of which are central to the concept of a “third place.”

As we reflect on these key takeaways from San Francisco’s Chinatown, it’s crucial to understand why consumers return to spaces time after time — to seek enjoyment, belonging, and identity. From cultural festivities and delicious food to vibrant surroundings and unique offerings, retail spaces can become a canvas for a multitude of experiences, empowering people to create their own journeys full of opportunities to learn and connect.

Current and future retail spaces can draw inspiration from vibrant cultural and community-building hubs to design meaningful spaces: an individual’s first choice, second home, and cherished third place.