“Collectively, a phygital experience that flows effortlessly from the real world to the digital and vice versa can attract customers and retain them long after they’ve left a physical store or liked a social media post.” – Rosemin Anderson.
Retail companies are increasingly adopting phygital retail strategies to improve shopping personalization and customer experiences. Companies across many sectors are integrating digital systems with physical shopping to streamline processes and enhance customer satisfaction. This article discusses how leading retail brands like Zara, Ralph Lauren, Marks & Spencer, and Tim Hortons leverage innovative phygital retail solutions to improve the customer experience and strengthen their market positions.
What is Phygital Retail?
Phygital is a set of strategies and solutions that combine physical and digital elements to create a seamless, integrated experience for customers. Phygital retail refers to blending physical and digital retail channels within the shopping journey to create an integrated and unified brick-and-mortar and online retail experience.
Why is Phygital Retail a Significant Trend?
The Phygital trend is revolutionizing how customers interact with retail brands by merging the traditional store shopping experience with modern digital conveniences to create a new and dynamic customer experience. This transformation improves consumer personalization, service, and engagement, making the shopping experience memorable, impactful, and enjoyable.
Examples of Successful Phygital Strategy Innovations
Quite often, customers seek the convenience of digital solutions but don’t want to miss out on in-person connections and physical experiences. Therefore, phygital experiences help to bring together the best of both worlds to blur the line between technology and in-person interactions.
Here are some examples of retail businesses that have successfully implemented phygital strategies:
Nordstrom
Nordstrom specializes in high-end fashion, footwear, and accessories, offering luxury products and premium brands. Their target audience includes affluent, fashion-conscious consumers seeking a personalized shopping experience, with a focus on middle to upper-income professionals.
The company embraced phygital retail strategies by pioneering live video shopping in the U.S. after witnessing the trend grow in Asia. Since 2020, Nordstrom has been integrating livestream e-commerce, allowing customers to see products in real-time and ask questions via chat interactions. This strategy has had the impact of blending the in-store experience with personalized digital interactions.
For example, during themed livestreams, customers can watch as products are demonstrated, see how clothing fits, and ask questions directly in the chat before purchasing items straight from the video stream.
Nordstrom’s strategy has helped enhance its reputation as a forward-thinking retail company while improving customer engagement. Customers appreciate the convenience of learning about products remotely but with a personal touch, which has bolstered Nordstrom’s brand as customer-centric and innovative.
Zara
Zara is a fast-fashion retailer offering trendy clothing, accessories, and footwear at affordable prices. The company’s target audience includes young adults and fashion-forward-looking consumers who value experiencing the latest trends and quick turnover of styles at moderate price points.
Zara’s app integrates real-time inventory tracking with its Store Mode feature, enabling customers to locate products in-store and check the availability of specific items by size and color. Customers can scan tags in-store, find exact product locations, and book fitting rooms via the app.
For instance, a customer browsing in-store can scan a product tag, check if the desired size is available, and even receive guided directions to its location within the store. The app also allows customers to reserve fitting rooms and get alerts when ready, minimizing wait times.
The brand’s phygital strategy streamlines the shopping journey and gives customers greater control over their time, improving shopping satisfaction. The real-time information and personalized service have reinforced Zara’s image as a fast-fashion retailer that values efficiency and customer convenience.
Ralph Lauren
Ralph Lauren focuses on luxury clothing, accessories, and home goods, known for its timeless, high-end designs. The company targets affluent, style-conscious individuals who are often in middle to upper-income brackets and who appreciate classic luxury and brand heritage.
The brand incorporates QR codes in its clothing items, allowing customers to verify authenticity, access care instructions, and view styling tips with a simple scan. This strategy was introduced to enhance trust and provide a more informative shopping experience.
For example, a customer shopping at a Ralph Lauren location can scan the QR code embedded in the label of a Ralph Lauren item to confirm it’s genuine. Furthermore, the customer may then learn how to properly care for the product and receive suggestions on how to style it. This strategy enhances the post-purchase experience while reassuring customers about the authenticity of their luxury items.
The adoption of QR codes has strengthened Ralph Lauren’s brand perception by positioning it as a leader in transparency and customer care. Customers appreciate the added layer of trust and personalization, which enhances the luxury shopping experience and aligns with the brand’s high-end image.
Marks & Spencer
Marks & Spencer (M & S) operates mid-market retail, offering food, clothing, and home products. M&S aims its marketing efforts at families, working professionals, and middle-aged consumers seeking quality, convenience, and value in everyday goods.
The brand launched its AR-powered List & Go app, providing customers a digital path to their desired items in-store. The app guides shoppers to the exact shelf location of products on their shopping list and offers personalized assistance during in-store visits.
For example, customers who use the List & Go app can enter their shopping list, and the AR feature will direct them around the store, pointing out where each item is located. This technology helps save time and offers a more convenient shopping experience, especially in large stores.
Marks & Spencer’s phygital strategy has improved the brand’s image as a customer-first retail store that values innovation. By integrating AR to simplify in-store navigation, M&S has created a more efficient shopping experience, positively influencing customer retention.
Tim Hortons
Tim Hortons specializes in coffee, baked goods, and quick-service meals, focusing on convenience and affordability. Tim’s target market includes everyday consumers, commuters, and families, with a strong appeal to middle-income individuals seeking quick, affordable food and beverage options.
The popular Canadian coffee and fast-food chain introduced the company’s phygital strategy through its mobile app, which integrates digital rewards, mobile ordering, and contactless payment options. The app allows customers to place orders ahead of time, customize their selections, and earn loyalty rewards, all while reducing wait times and enhancing the convenience of their in-store experience.
For instance, Tim’s customers can order coffee and breakfast through the Tim Hortons app, select a nearby physical location, and pay digitally prior to going to the store. This system is user friendly and ensures the order is ready for pickup when the customer arrives. What’s more, the app also tracks their loyalty reward points and suggests personalized offers based on previous orders.
Tim’s phygital strategy has strengthened Tim Hortons’ brand perception as a modern, customer-friendly coffee chain by enhancing convenience and customer engagement. The digital integration has led to smoother transactions, faster service, and increased loyalty, all while appealing to tech-savvy consumers seeking quick and seamless experiences.
“At the heart of phygital retail lies the concept of seamlessness. Retailers strive to provide customers with a consistent and integrated experience across various touchpoints, be it in-store, online, or on mobile apps. This cohesion ensures that customers can effortlessly transition between channels without encountering friction or disconnect.” – Diya Bag, Senior Content Writer, Commercetools.
Final Comments
The Phygital retail trend has fast-forwarded the integration of digital technology into retail and service experiences, as seen in the strategies of Zara, Ralph Lauren, Marks & Spencer, and Tim Hortons, demonstrates the power of innovation in enhancing customer personalization and satisfaction. These retail companies combine online and in-store features effectively to create friction-free, personalized shopping journeys. As consumers increasingly seek efficiency and convenience, businesses that adapt to these expectations are better positioned to cultivate loyalty and strengthen their market presence.
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