Designing Retail Development Spaces – The Case of the Future Retail Store

This paper addresses innovation challenges faced by small and medium-sized retailers by introducing the concept of a Retail Development Space (RDS) to drive business model innovation. Using a narrative case study approach, we examine the Future Retail Store (FRS) initiative, tracing its evolution and impact on participating retailers. As active participants in the project, we draw on our firsthand experiences to provide a detailed account of the RDS's development and its implications for retail innovation. Through critical reflection, nine foundational design principles for future RDS projects are derived. These principles underscore the importance of dedicated spaces to handle complex retail innovation, tailored methodologies, careful integration of user participation, external incentives for SME retailers, and the use of retail-specific metrics for evaluation. The study contributes to both practice and research by providing practice-infused implications for designing and implementing RDS.