LEGO's Secret: Leveraging Physical Retail Spaces Into Places for Storytelling

When one thinks of LEGO, an infinite number of possibilities might spring to mind. Crafting a sprawling medieval castle, complete with a working drawbridge, perhaps. Or maybe sailing the high seas in search of loot and other plunder. If sci-fi is more your thing, a space station with all of the amenities could be on the menu. Something seemingly mundane but still wholesome, your very own main street, one boasting coffee shops and florists and leisurely traffic, is also a possibility.

From these beginnings in childhood, and now with an army of LEGO adults in tow, the brand has become an iconic staple of the toy and multimedia market. And more recently, as Retail Dive outlined, LEGO has given onlookers yet another example of how experiential retail can be properly executed.

Martin Urrutia, the company’s head of global retail experience and innovation, took a philosophical turn when he stated that physical retail stores can be considered media channels — places for storytelling and tactile or sensory brand experience.

“The expectations are to deliver best-in-class experiences where the brand will come to life,” he said. 

LEGO Takes Livestreaming to a New Level and Takes Down Store Shelves To Offer Customization Station

In a move that may seem counterintuitive to retail traditionalists, LEGO has been removing product shelving in some cases to allow for room to install its customization stations. From there, customers can engage with large screens and colorful bins filled with bricks and other parts to build their very own miniature LEGO figures (minifigures). Text, drawings, and decorations can also be added to these minifigures, making the experience fun and memorable for shoppers.

“We’re removing the space from products, but we believe that will make the store visit unique and we’ll keep shoppers engaged to come and visit again,” Urrutia said.

LEGO is also leaning big into livestreaming, one of the emerging trends in the retail space. In another somewhat unorthodox move, instead of relying on fancy sets or celebrity influencers to capture audience attention, the toymaker is relying on its own assets — namely, retail stores and staff — to add another channel into the mix.

“We already have the product. We have the set,” Urrutia said. "They [employees] do a great job talking to customers every day. So why not allow them to be on livestream? They are great stars. They’re very authentic. We love the passion that they bring.”

LEGO Installations Around the World Speak to the Brand's Universal Appeal

LEGO, having Danish roots, is also an international brand with near-universal appeal, both in terms of international markets as well as in terms of age and gender demographics.

In Canada, as CBC reported, Science North — a science center in Sudbury, Ontario — is promoting a new exhibit featuring over 100 unique LEGO sculptures. A dragon, hummingbird, and various other pieces are featured in an attached promotional video, with imagination being the only limit. More than 2 million bricks were used by artist Sean Kenney and his team from Amsterdam to produce the sculptures on public display.

"One of the things that's really amazing about this is that there is no limit when it comes to what you can use LEGO bricks for," said Science North CEO Ashley Larose. "And I think that that's one of the big wow factors for our visitors."

Meanwhile, in England, a LEGO piece celebrating the suffragette movement is currently on display at the University of Warwick. According to the BBC, the model was built in 2018 to commemorate the 100th anniversary of women gaining the right to vote, and it required 32,327 bricks to build.

Speaking at the 2025 NRF Big Show held in New York City, Urrutia outlined the massive displays put on by LEGO's Battersea Power Station store in London.

“A couple of months ago we landed a spaceship in the center of the store. We have Santa’s chair — made of Lego bricks — with a fireplace. That’s what delights and creates memories for shoppers," he said.

Last February, that store was transformed into a flower shop bearing the name of "Le Florist." A total of 220 sets of flower arrangements were compiled by staff.

LEGO Still Builds Upon Retail Fundamentals To Produce Its Successes

It's not all flash and pageantry when it comes to the fundamentals of in-store success, however. In his remarks, as cited by Retail Dive, the LEGO exec reinforced the importance of having proper stock allocation on hand to satisfy customer desires, operating stores in ideal locations to drive foot traffic and sales, and ensuring frictionless communication — no matter what channel you're engaging with consumers on.

Whatever LEGO is doing seems to be working, at least if the company's revenues are any indicator. According to The Visual Capitalist, LEGO reached nearly $10 billion in revenue in 2023 and has enjoyed a steep and steady upward trajectory in terms of sales figures.