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Phygital retail is shaping the new omnichannel experience
Phygital retail brings the omnichannel experience to life, uniting stores, apps and social commerce for frictionless hybrid-shopping journeys.
Phygital retail brings the omnichannel experience to life, uniting stores, apps and social commerce for frictionless hybrid-shopping journeys.
Physical retail isn’t dead. It is evolving. While some retailers have struggled in recent years, the predictions about the “death of the high street” have proved wrong.
What’s really happening is a transformation. Ecommerce brands are expanding into physical spaces, and traditional retailers are blending digital tools with stores.
This new model is called phygital retail. It merges the convenience of online with the immersive experience of offline, creating unified journeys where shoppers can browse, buy, and connect across channels.
Phygital retail, often described as clicks to bricks, is the strategy of driving online shoppers into physical spaces.
If brands stick only to one channel, they risk excluding a large share of consumers.
Combining both channels allows retailers to create a true omnichannel experience where the brand feels consistent, whether the shopper clicks or visits in person.
High street retail has made a comeback. Shoppers have returned in significant numbers, proving their appetite for in-person discovery.
Physical still matters:
Gen Z and millennials increasingly see stores as spaces for community and discovery.
Flagship spaces and pop-ups often double as social hubs, offering areas to hang out, take photos, and engage with products in ways that are inherently “Instagrammable”. The physical store becomes a backdrop for self-expression and a place to curate experiences worth sharing online.
They browse online but want to see products in the flesh before committing. Gen Z expects stores to go beyond the basics. They want experiences that are authentic, shareable, and community-led.
Meeting these expectations helps brands build long-term loyalty with a generation that is rapidly becoming the most influential consumer group.
With flexible lease terms and reduced vacancy rates, digitally native brands are experimenting with pop-ups and temporary outlets.
These spaces allow them to test new markets, increase visibility, and connect with customers offline without committing to long-term costs.
Pop-ups are no longer just about short-term sales. They have become cultural moments that build urgency, exclusivity, and community buzz.
Together, these examples show that pop-ups are evolving from temporary storefronts into immersive brand theatres.
They deliver proof of demand, energise communities, and give retailers a low-risk way to experiment with physical spaces before opening permanent locations.
Retailers cannot treat ecommerce and physical stores as separate silos. Shoppers expect unified experiences in every interaction.
Brands that deliver see higher engagement, stronger conversion and higher lifetime value, while inconsistent service remains one of the fastest ways to lose customers.
The numbers prove it:
Modern shoppers see channels as interchangeable. They expect consistent pricing, service, and personalisation whether they are on TikTok, browsing a website, or in-store. Meeting these expectations requires three pillars: loyalty integration, unified inventory, and seamless journeys.
Loyalty programmes need to work seamlessly online and offline, so customers can earn and redeem rewards wherever they shop. Consistency builds trust, and loyalty integration is a direct driver of retention.
Customers want real-time visibility into stock availability, whether they are standing in a store aisle or browsing a mobile app. Unified inventory prevents frustration, supports services like click-and-collect, and allows brands to make better use of their store networks.
Leading retailers already show what true omnichannel looks like.
Shoppers do not see channels. They see brands.
They expect consistent pricing, promotions, service levels, and personalisation whether they are on TikTok, a website, or in-store.
Retailers that fail to meet these expectations risk churn, while those delivering a frictionless omnichannel experience gain loyalty and higher spend.
Read more in our seasonal trends piece All shoppers want for Christmas is a hybrid retail experience.
One of the strongest signals that phygital retail is here to stay is the number of ecommerce-first brands moving into physical spaces.
These stores are not just about sales; they are designed as brand stages, social hubs, and testing grounds.
A few stand-out examples illustrate how different strategies are being put into play.
Each of these brands shows that moving from clicks to bricks is not about abandoning ecommerce, but about extending it.
Creating physical spaces that embody a brand’s digital DNA makes shopping feel consistent, memorable, and community-driven.
For retailers entering this space, the lesson is clear. Physical retail is most powerful when it amplifies, rather than competes with, the digital journey.
AI is no longer futuristic. It is becoming retail infrastructure.
AI is no longer just about automation behind the scenes.
It’s becoming part of the shopping journey itself, guiding decisions, personalising experiences, and making retail feel more human, not less.
The real opportunity lies in blending machine intelligence with the empathy of store staff and the creativity of brand storytelling.
Blending digital and physical also means thinking inclusively.
To go further, explore our Rethinking Accessibility white paper for practical steps on building inclusive phygital experiences.
The next wave of phygital retail blends digital innovation with in-store pragmatism.
RFID tags now allow real-time inventory visibility across channels, and cashierless checkout is gaining traction.
Amazon Go pioneered the concept, but supermarkets and fashion brands are increasingly piloting similar systems.
This reduces queues, improves stock accuracy, and makes stores feel as seamless as their online counterparts.
Hybrid shopping is not a trend on the horizon. It has become the baseline expectation.
Customers move fluidly between online browsing, social commerce, mobile apps, and physical discovery.
Retailers who treat phygital as an experiment will fall behind, while those who see it as the foundation of omnichannel commerce will be the ones to thrive.
For a deeper dive into practical steps, see our guide on how to build phygital experiences to connect hybrid shoppers.
Success in modern retail requires building a foundation that brings digital and physical together in a way customers genuinely value.
Retailers that have made the leap from clicks to bricks show that long-term success depends on getting the basics right before layering on innovation.
The following priorities form the building blocks of a phygital and omnichannel strategy.
The retailers that will thrive are those who treat these actions as interconnected and not isolated tasks.
Phygital success is about more than adding new channels or tools.
It is about creating one seamless, customer-centred journey where every touchpoint reinforces trust, convenience and loyalty.
Phygital retail merges online and offline experiences, creating a seamless customer journey across digital and physical channels.
Because customers still prefer in-person discovery. In 2024, physical stores made up 70% of sales worldwide.
Omnichannel retail reduces friction, offering consistent pricing, inventory, and service across all channels.
AI, predictive inventory, AR/VR, mobile apps, social commerce, and contactless checkout.
Both. Hybrid retail is becoming the standard, with digital tools enhancing physical spaces.
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