
There’s a lot of talk about the future of retail and how that horizon will take shape even now that digital has stabilized. In these discussions, one very common mistake is assuming that physical stores will lose ground over time. It’s no wonder that the concept of Phygital retail is one of the most talked-about topics in the industry right now.
Wouldn’t it be perfect to combine the best of the online shopping experience with the most established strengths of in-person sales? Phygital treats this not just as a possibility, but as a reality. Almost like a merger, the two approaches to commerce are brought together in an integrated, intelligent way to deliver the perfect experience.
We’ll dig deeper into this topic throughout this article. Keep reading to learn more.

What is the concept of Phygital retail?
Phygital retail is an idea that integrates the practices carried out at points of sale with the strategies used in the digital space. This makes it possible to create more satisfying experiences, combining the best of both worlds and delivering it to the consumer.
If we look closely at the term Phygital, we can see that it comes from blending two English words: Phy (from Physical) and gital (from digital). In other words, physical and digital retail combined. Even though the name already hints at what it’s about, taking a deeper look at the concept helps you understand, in concrete terms, how to put it into practice.
Let’s start by thinking about a factor that’s unique to the in-store shopping experience: evaluating a product in your hands. As great as it is to shop online for the convenience, you only get to touch the merchandise once it arrives at your home. Being able to do that in person is often what clinches the sale.
Now, let’s think about a simple benefit of online shopping that makes all the difference: you don’t have to wait in line. In very crowded stores, it can be frustrating to wait a long time just to pay for an item.
The best of both worlds?
Yes, in theory and in practice, Phygital offers the best of both worlds. Broadly speaking, the idea is to digitize the shopping experience in brick-and-mortar retail in a smart way. With the support of technology, consumers walk into stores and find a range of modern, innovative options that make their visit more convenient. All of this is built on interaction and a personalized customer experience.
To give you a more concrete idea of what a store applying the Phygital concept would look like, it would feature resources such as:
- a proprietary augmented reality app, in case the customer wants to project a product that isn’t on display or try on clothing without going to a fitting room, for example;
- interactive self-service kiosks, where customers can request an item through a tablet or even check product availability more autonomously and independently;
- self-checkout stations to avoid lines;
- purchases that can be made online but picked up directly at a store, eliminating the longer wait for home delivery, as is the case with Guide Shops;
- ERP systems capable of integrating store and e-commerce inventory, simplifying logistics management and increasing the accuracy of the information shown to consumers.

How is the experience valued in this concept?
Selling can no longer be considered the main purpose of a physical store these days. After all, if that’s your only goal, the competition will easily outpace your business. Without the experience, no business will ever become a benchmark, whatever the industry.
In Phygital retail, you need to set aside the idea of a point of sale and embrace the point of experience. This means brands can’t think of their store as just a place to sell products, but rather as an opportunity to make a great impression on the consumer. After all, if that’s not the case, why would people come to your store?
The customer journey has changed a lot in recent years. One of its main characteristics today is that it’s no longer linear. In other words, people no longer follow a set rule or habit. Someone who shops online today may want to visit your store tomorrow. When that opportunity comes, delivering an above-average experience is essential.
That’s why brands always need to think about how to involve, engage, and make a unique and incredible impression on consumers. Think of it this way: your brand is a religion and your store is a temple, a cathedral. Your company’s whole idea is much more likely to make sense and win over a consumer when that person visits the store. That’s your chance to turn them into one of the “faithful.” In this case, a loyal customer.

Should digitally native brands consider physical stores?
The huge leap forward in digital over the past few years has raised a lot of questions about the future of retail. The most radical voices went as far as declaring that physical stores’ days are numbered. But we know that’s not true. After all, there’s one key factor that keeps things constantly changing: consumer buying behavior.
The COVID-19 pandemic made it clear that shopping online was not only an option but also a necessity for many people. Over time, and as vaccination rolled out, life for millions gradually went back to the “old” normal. So, is shopping online still the only option?
The long stretch without being able to visit stores and enjoy an in-person shopping experience left the average consumer feeling the need to get back to this simple but important habit. Picking up on this, digitally native brands made their call: having a physical store can actually be a great idea.
This craving for in-person experiences has sparked a wave of brands opening physical spaces to boost brand awareness and market presence. It’s simply a step forward, with no step back. In other words, digital remains as important as ever. Meanwhile, physical spaces are being launched and, to be as successful as possible, they focus on creating standout experiences.
Built on technology and innovation, and always geared toward a standout customer experience, Phygital retail is a must for brands. This concept is definitely here to stay, and it’s already the reality of the market.
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