Imagine you’re managing a vast, multichannel retail operation. Your goal isn’t just to sell products but to meet customers wherever they’re shopping—be it online, in-store, or through mobile apps.
The future of retail lies in a powerful blend of physical and digital experiences—what the industry now calls “hybrid commerce.” This model, also called "phygital," merges the quick, in-person experience of shopping with the ease and customization of online platforms. For brands aiming to build a resilient retail strategy, hybrid commerce enables seamless consumer engagement across touchpoints, improves customer loyalty, and helps brands to quickly adapt to changing expectations.
The rise of phygital, the future of integrated retail
So, what is hybrid commerce?
It is an approach that combines online and offline experiences, giving retail customers the freedom to switch seamlessly between channels based on convenience and preference. It’s about delivering an integrated experience—where customers can browse and buy on a website, try products in-store, and, if needed, complete purchases via a mobile app.
For instance, Nike’s app allows shoppers to check in-store availability, reserve products, and access exclusive content, while Target’s Drive Up and Order Pickup services allow customers to buy online and retrieve their orders curbside at physical locations. This creates flexibility and convenience, particularly appealing to modern consumers who expect tailored and efficient service.
Source: Insider-trends.com
Source: leahingram.com
With nearly 73% of retail consumers using multiple channels to shop for products and services, hybrid commerce has become essential to meet today’s consumer expectations. As a result, many retailers are increasingly focusing on investing in hybrid commerce solutions to align with this shift in shopping behavior and provide a more seamless, integrated shopping experience across both digital and physical channels.
Here’s a quick overview of how hybrid commerce benefits retailers:
/ Boosts engagement by offering a seamless shopping experience across channels
/ Delivers personalized interactions tailored to individual customer preferences
/ Increases conversions by providing flexible shopping options both online and in-store
/ Enhances customer loyalty through consistent experiences and touchpoints
/ Improves operational efficiency by integrating data and processes from both digital and physical channels
So, what’s next for hybrid commerce?
Another exciting possibility for phygital retail lies in the potential of emerging hardware like AR glasses, such as the recently announced Meta Orion. Imagine a future where customers in-store could use these glasses to see additional product details—like reviews, personalized recommendations, or usage instructions—overlaid in real-time as they browse. Advancements in AR technology are paving the way for immersive shopping experiences that blend physical and digital worlds seamlessly.
Top 5 hybrid commerce strategies every retailer needs for 2025
1. Generative AI for a personalized hybrid shopping experience
Generative AI is revolutionizing the way retailers engage with customers, offering personalized experiences across online and in-store channels. It allows brands to generate hyper-personalized content across various platforms—from product detail pages to digital recommendations and interactive virtual experiences—without overwhelming internal teams. GenAI could add $400 billion to $660 billion annually in value to the retail and consumer packaged goods (CPG) industry by boosting productivity and improving operational efficiency.
For example, Albert Heijn, a Dutch supermarket is taking significant steps in generative AI to enhance the shopping experience. Their Scan & Kook feature allows customers to snap a photo of ingredients and receive personalized recipes, promoting both convenience and reducing food waste.
Source: sustainablekitchen.org
These applications show how GenAI can enable large-scale customization, making each interaction feel unique and attentive. In 2025, AI will be an even bigger player in hybrid commerce, providing hyper-personalized experiences both online and in-store. Imagine receiving personalized recommendations on your phone as you walk into a store based on what you were browsing online. This kind of tailored engagement is what will drive higher conversion rates and deeper customer relationships.
When paired with effective product data management, retailers can harness AI to make smarter recommendations and stay ahead of customer needs.
2. Channel prioritization: Choosing the right platforms for real impact
In 2025, retailers must assess where their customers are most active and focus resources on the platforms that will yield the highest impact. The rise of social commerce, especially on platforms like Instagram and TikTok, also requires brands to prioritize where their target audience is engaging the most. For example, livestream shopping is one way beauty and fitness brands combine online engagement with real-world interaction, offering live demonstrations and real-time feedback. By leveraging data, retailers can pinpoint the most effective channels, offering tailored experiences like online-only discounts or exclusive in-store events.
Understanding how to use the right channels is key to ensuring maximum ROI. Productsup's solutions, such as Advertising PX and Marketplaces PX, help brands seamlessly integrate and optimize product data across high-engagement platforms, like Amazon and Google, as well as other various advertising channels, such as TikTok, Facebook, Instagram, and more, boosting visibility and driving conversions.
Find out how kaiserkraft achieved a 68% revenue increase
Kaiserkraft, a leading B2B retailer, improved their product data management, resulting in a 68% revenue boost. Discover how Productsup enhanced their operational efficiency and multi-platform performance.
Learn more here →3. Managing “abandonment shopping”: Minimizing friction across customer journeys
Today’s consumers expect flawless service at every stage of the shopping journey, and one bad experience can lead to immediate abandonment. This “abandonment shopping” or “rage shopping” phenomenon—where frustrated consumers abandon brands due to negative experiences—is on the rise. The overall average cart abandonment rate in the retail industry is over 70%.
Hybrid commerce provides solutions for reducing customer attrition, offering streamlined, integrated support systems that prevent errors. Retailers like Best Buy leverage technology to reduce stress shopping by offering easy-to-use self-checkout kiosks and providing real-time inventory updates that guide customers to the right products without hassle. Furthermore, loyalty programs spanning both channels allow customers to enjoy perks regardless of shopping in-store or online.
Source: reddit.com/r/Bestbuy/
Source: shipbob.com
Reducing stress points in the shopping experience, especially at moments like checkout or stock unavailability, is essential for boosting conversions and ensuring customers feel confident in their purchase decisions.
4. Hyper-localization strategies: Reaching local audiences with precision
In a globalized market, catering to local tastes, cultures, and preferences is crucial for brand relevance and connection. Hybrid commerce allows brands to implement hyper-localized strategies that address the specific needs of different regions, fostering deeper community connections. For instance, Walmart tailors its online inventory to regional preferences, ensuring that local shoppers see products relevant to their area.
As consumers expect brands to understand their preferences and local context, hyper-localization will be key to hybrid commerce success. This approach boosts customer satisfaction and drives both foot traffic and online engagement by offering personalized, relevant value. Localization extends beyond content to include compliance with regional ecommerce regulations. Productsup’s Marketplaces PX supports brands in managing multiple platforms, ensuring regulatory compliance, thus building trust and engagement across diverse regions.
5. Technology investments for the right tools: Integrating physical stores and ecommerce
The success of hybrid commerce relies on having the right technology infrastructure. Brands need robust tools to handle real-time inventory management, vast data flows, and seamless supplier coordination. Investing in omnichannel platforms that integrate online and in-store experiences will allow for features like real-time inventory checks, click-and-collect services, and personalized recommendations based on purchase history.
Retailers also benefit from technology that integrates data from all channels, giving them a single, cohesive view of customer, sales, and product data. Productsup’s P2C (Product-to-Consumer) platform offers a unified data management solution that helps retailers stay agile and responsive to customer demand while minimizing operational inefficiencies. As retailers shift their priorities from achieving topline growth to profitability, consolidating tech stacks through P2C and optimizing campaigns can future-proof their operations and keep pace with evolving customer expectations.
Productsup to power your hybrid commerce success
From streamlining product data management to ensuring regulatory compliance, Productsup provides brands with a comprehensive platform that simplifies data integration and enhances channel performance. By offering a centralized platform for all your product data, Productsup helps retailers create seamless, personalized experiences across every retail channel, connecting with customers where it matters most.
As hybrid commerce redefines retail, partnering with Productsup can give you the agility and efficiency needed to lead the market forward. Schedule a call with us to learn more.
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