What is phygital retail?

Phygital retail combines the physical store experience with digital services to connect the in-store shopping journey to mobile and e-commerce.

Phygital-retail-article

Phygital retail refers to a business model that combines the physical experience at the point of sale with digital technologies to facilitate purchasing. Customers discover a product in-store, receive advice or try it out, then interact with a digital device (smartphone, QR code, app, terminal) to access information and, if necessary, complete their order.

Canonical definition: phygital retail is a shopping journey that combines the physical in-store experience with digital interactions (smartphone, QR code, application, kiosk, tablet) to facilitate decision-making and transactions.

Quick definition

Phygital retail combines store and digital technologies (mobile, QR code, kiosk, tablet, payment) to create a seamless experience between discovery , information and purchase , without a break between the physical and the digital.

Key takeaway: definition of phygital retail

  • Phygital retail combines physical commerce and digital interactions.
  • The point of sale becomes a space for experience and advice.
  • Digital technology allows access to product information and triggers the purchase (on mobile, kiosk or application).

Examples of phygital devices

  • Interactive kiosks : view the range, reviews, order a product not available on the shelf.
  • Connected mirrors : visualize an outfit, request a size, compare variations.
  • Catalogue on tablet : access expanded references, configure a product, save a selection.
  • Mobile payment : reduce waiting time, pay from the aisle, streamline the checkout process.
  • Click & Collect : buy online and pick up in store (or the other way around: try in store and order).
  • Product QR code : access the product sheet, its contents, and then purchase directly on your smartphone.


Why is phygital retail developing?

The rise of phygital retail can be explained by several profound transformations in commerce.

The evolution of purchasing habits

Consumers are used to the simplicity of e-commerce: constant product availability, fast delivery, and access to a wide selection. They now expect the same seamless experience when visiting a physical store.

The pressure on physical retail

Shops today face several challenges:

  • the increasing competition from online commerce
  • the reduction of stock in stores
  • the need to offer customers more choice

Phygital retail makes it possible to offer a wider range of products without tying up more stock, while still maintaining the store as a place for testing and advice.

The central role of the smartphone

The smartphone has become a central tool in the shopping experience. Customers can compare products, read reviews, check availability, or place orders directly from their phones.


How does phygital retail work?

Phygital retail is generally based on a hybrid customer journey:

  1. The customer discovers the product in store.
  2. He can try it out or get some advice.
  3. A digital tool allows access to information and ordering (QR code, kiosk, application, salesperson tablet).
  4. The order is placed on a smartphone (or on a device in store), with secure payment.
  5. The product is delivered to the customer or collected later (in-store pickup, click & collect).

In this model, the point of sale becomes primarily a space for experience and triggering sales , while digital technology brings fluidity, choice and continuity.


Examples of phygital retail

Phygital retail takes many forms, depending on the sector and the type of store. The objective remains the same: to link the in-store experience to a digital interaction that facilitates the purchase .

  • Interactive kiosk : the customer explores a wider range than that available on the shelf, then places an order.
  • Salesperson tablet : the advisor shows variations (sizes, colors), checks availability, and triggers the order.
  • Mobile payment : the customer pays from the aisle, without going through a traditional checkout.
  • Click & Collect : the customer buys online then picks up in store, or reserves online before trying.
  • Product QR code : the customer scans, accesses the product sheet, then buys on their smartphone.

In a "phygital" approach with no extensive stock, some products can be displayed and tried in-store, while the order is placed via mobile. This gives the customer access to the entire range without the store needing to stock all the items.

Solutions like E-POP STORE enable this type of experience: products are displayed in physical points of sale and the order is placed directly on mobile, without the point of sale needing to manage a full stock.


The advantages of phygital retail

Phygital retail offers benefits for brands, points of sale and consumers.

For the brands

  • develop their in-store presence
  • to offer their entire range beyond the constraints of linear
  • mastering digital transactions and customer relations (depending on the chosen organization)

For points of sale

  • expand the product range without tying up more stock
  • Modernize the customer experience with simple tools (QR, tablet, mobile payment)
  • generate new revenue streams (according to the distribution model)

For consumers

  • try the products in store
  • access more choices (sizes, colors, variations) via digital
  • Order easily and get it delivered or pick it up in store


Concepts related to phygital retail

  • Stockless retail : an approach where products are displayed at the point of sale, but ordered via a digital channel.
  • Connected wholesale : a distribution model where the point of sale becomes an activatable and measurable channel, with a digitized transaction and sales attribution.
  • Omnichannel commerce : coordination of sales channels (store, e-commerce, mobile) for a consistent experience.


Frequently asked questions about phygital retail

What is the difference between phygital retail and omnichannel?

Omnichannel involves coordinating multiple sales channels (store, e-commerce, mobile). Phygital retail places greater emphasis on the direct integration of digital technologies into the physical in-store experience.

Is it possible to sell in-store without stock thanks to phygital?

Yes. Phygital retail allows a product to be displayed in-store while also allowing customers to order it through a digital channel. Inventory can then be managed by the brand or a central warehouse, with home delivery or in-store pickup available.

Is the QR code a tool for phygital retail?

Yes. QR codes are frequently used to link the in-store experience to a product page, to content, and then to online ordering.

About this article

This article is published in The Connected Retail Guide , the analysis blog of E-POP STORE , dedicated to new purchasing journeys and distribution models: phygital retail, stockless retail and connected wholesale.