Starbucks begins work on Russell Centre “tri-state” store, testing its ‘third place’ and loyalty push

Starbucks is beginning construction on a new modern-format store at Russell Centre, a project that aims to bring its coffee brand into a higher-traffic retail mix anchored by Kroger and Lowe’s. The move is being framed as a real-world test of Starbucks’ long-running “third place” strategy, which seeks to give customers a comfortable space outside home and work to linger and return.

The store’s location matters to the company’s stated intent. By adding Starbucks to a retail node already designed to pull regular shoppers, the chain is effectively trying to convert occasional store visits into more habitual patterns, a key theme behind how Starbucks has described the value of “third place” experiences.

Alongside the physical format trial, Starbucks is also looking to validate what it calls its loyalty engine, which is built around Starbucks Rewards. The goal, according to the report, is to use customer loyalty to translate a stronger in-center presence into repeat behavior, rather than letting visits remain sporadic.

Starbucks’ approach in recent years has put heavy emphasis on increasing frequency, not just overall volume. The logic is straightforward: if customers visit more often, even modest improvements in average transaction patterns can compound across a large installed base. Placing Starbucks inside a shopping environment with established anchor tenants is one way the company can influence how often people pass by and, potentially, how likely they are to stop.

A modern-format store can also announcement an operational and design bet. While the article does not provide technical details, the emphasis on a new-format location suggests Starbucks intends to refine how the store fits the surrounding customer flow, from layout to service rhythm, to support quicker, more frequent customer decisions.

For context, Starbucks’ “third place” concept has been central to its brand for decades, even as the company has adapted it to changing retail formats and customer habits. In practice, that means creating a space that feels consistent enough to be familiar, yet convenient enough to fit into everyday routines, so customers do not view a visit as a special occasion.

What Starbucks does not disclose in the cited report is also important. The post does not specify the store’s size, opening date, expected capex, or whether the tri-state rollout is tied to a broader calendar of similar trials across other markets. It also does not provide any early performance metrics, such as traffic estimates, loyalty enrollment changes, or sales targets for the Russell Centre location.

Going forward, investors and competitors will likely watch whether this kind of anchored, modern-format placement improves customer behavior in measurable ways. The next meaningful datapoints would be any store opening updates, comparable sales commentary tied to new formats or regions, or additional detail on how Starbucks is evaluating loyalty-driven frequency in experimental locations. Until then, the Russell Centre project remains a test of strategy in the real world, with results not yet available.