From the cookies at your grandmother’s house to the toys of your childhood, the power of nostalgia is strong. Science has proven that reliving your favorite memories can release dopamine in your brain and boost your mood. In fact, studies have found that 77% of Americans agree that nostalgic memories are a source of comfort when life is difficult. That’s why it’s no surprise that brands are using childhood nostalgia and retro environments to drive engagement. According to the Journal of Consumer Research, nostalgia can make people more willing to spend money because it enhances social connectedness and combats loneliness. As a result, consumers are willing to pay up to 10 to 15% more for products that evoke nostalgic feelings. Experiential design that’s rooted in memory is a major retail and entertainment strategy, giving brands the power to succeed in a competitive market.

Playing the Game at Chuck E. Cheese and Chuck’s Arcade

Chuck E. Cheese, the popular entertainment restaurant location known for its animatronic animals, arcade games, and pizza, became a late ’90s staple. While the company has navigated ups and downs, it made a groundbreaking decision last year with Chuck’s Arcade™. The bold new arcade concept that combines classic games and the hottest new games alongside iconic animatronic characters. But here’s the most unusual part: Chuck’s Arcade™ is targeting adults and lifelong fans. 

“The arcade was created for adults and lifelong fans who grew up surrounded by the electric glow of arcade screens, the symphony of digital soundtracks, and the thrill of chasing high scores with friends long into the night. Chuck’s Arcade is a modern-day love letter to the games and people who made Chuck E. Cheese great,” a news release said.

For Gen X-ers and elder Millennials who spent their childhoods in an arcade, this nostalgic edge is a turn in the right direction.

Building an Empire with the Build-A-Bear Workshop

Founded in 1997, the Build-A-Bear Workshop skyrocketed to success thanks to its interactive process. The stores allow children to customize each teddy bear, stuffed animal, and character. The children’s retailtainment powerhouse recently underwent an overhaul and welcomed a new fanbase with the launch of its wearable plush collection. 

“We’re seeing a real shift in how our guests engage with plush; it’s no longer just something you own, it’s something you style and show off,” says Kim Utlaut, Build-A-Bear Senior Vice President, Chief Brand Officer.

Their in-store options have also expanded, thanks to partnerships with brands like Hello Kitty, which has a Millennial and Gen-Z following. Playing into nostalgia turned out to be a huge success for the company. In 2025, they were one of the best-performing stocks in the stock market, NBC News reported. With more than 650 franchise locations, the company reported $529.8 million in total revenues for fiscal 2025. That represents the company’s 5th consecutive year of record results, they shared in a release.

Barbie Activations and Pop-Ups

When Barbie, the film directed by Greta Gerwig and starring Margot Robbie, hit theaters in 2023, a nostalgic revolution caught on immediately. Fans showed up to theaters in bright pink fashions and posed for photos at activations in movie theater hallways. A few years later, Barbie-related pop-ups are still dominant, like the official Malibu Barbie Cafe in Boston’s historic Faneuil Hall. Offering photo ops like a life-sized Barbie box and a Barbie-themed menu, Millennials who grew up playing with Barbies are recapturing their childhoods. At the same time, children who are enchanted by the colors and fun environment also want to participate. 

Companies need to understand that nostalgia holds power. According to a Nielsen report, brands leveraging nostalgia can increase engagement by up to 60%. By reaching into the past, brands resonate with our hearts and minds. They reel in former customers and engage authentically with new ones. In a competitive environment, building solid client bases is no simple task. But by creating something that evokes a strong feeling in the public, a company can truly take flight.