I truly believe that the retail space IS the brand space. Anyone who works with me knows I harp on about it.......alot. Why? Because (far from being the ugly cousin of marketing) retail is the place to create experiences - powerful, tangible interactions that keep customers coming back for more.
Look no further than Disney for rampant innovation and turnaround in the retail space.
No surprise with Steve Jobs on the board ...........they're about to launch a heap of new stores in the USA (at the cost of US $1m each) creating retail destinations where customers are completely engrossed in total sensory magic (Disney-style, of course).
I could go on but perhaps you should just hear it from the source.
Full the full overview, check out The Hub's interview with Jim Fielding (President, Disney Stores Worldwide):
http://www.hubmagazine.com/archives/the_hub/2010/mar_apr/the_hub35_disney.pdf