Phygital: 5 Reasons Why Your Retail Business Won’t Survive Without It by 2025

What is Phygital? The Silent Revolution Transforming Retail

Let’s face it: the term “phygital” might sound like just another marketing buzzword. However, behind this portmanteau of “physical” and “digital” lies a fundamental transformation of commerce that’s already redefining the rules of the game. Phygital isn’t an option or a passing trend – it’s the new standard that will determine which retailers will thrive and which will disappear in the coming years.

Since the pandemic, there has been a spectacular acceleration of this phenomenon. Consumers no longer want to choose between the physical experience and the benefits of digital. They demand the best of both worlds. And the numbers are relentless: retailers who continue to separate their sales channels are already losing significant market share.

In this article, we’ll reveal why phygital represents much more than a technological evolution – it’s a strategic response to the real expectations of 2025’s consumers. You’ll discover how this approach is becoming a measurable performance catalyst for retailers who adopt it intelligently, why you can no longer ignore it, and most importantly, how to implement it without losing your business’s soul.

Phygital, More Than a Buzzword: A Concrete Response to Consumer Expectations in 2025

Why Customers No Longer Want to Choose Between Physical and Digital

Let’s be clear: your customers have already settled the question. According to the latest Salesforce study (2024), 73% of consumers now expect a perfectly seamless experience between physical stores and e-commerce. This is no longer a “nice to have” – it’s a prerequisite. Today’s customers navigate between channels with disconcerting agility: they research a product online, test it in-store, compare prices on their mobile while in your shop, and sometimes finalize the purchase on your website from their couch.

What we observe daily with our partners is that customers no longer “choose” a channel – they use the one that best meets their current need. And they expect to find the same quality of experience, the same level of information, and the same benefits, regardless of the point of contact.

Phygital, a Performance Catalyst for Retailers

The numbers speak for themselves. Our latest WISHIBAM study (2024) reveals an average increase of 28% in the average basket in connected points of sale. This isn’t magic – it’s the result of a well-executed phygital strategy.

In Bordeaux, the findings are similar. Castéja jewelry, a century-old family business, saw its turnover increase by 22% in six months after adopting our phygital solution. “We’re now reaching a younger clientele who start their journey online before coming to finalize in-store,” says its manager.

Phygital isn’t just about technology – it’s primarily an approach that values the human while leveraging digital. Salespeople become augmented advisors, able to instantly access customer history, preferences, and the extended catalog. The result: an enriched customer experience and increased commercial performance.

Retailers, Here’s Why You Can No Longer Ignore Phygital

A Sovereign Omnichannel Strategy, or Nothing

Let’s be frank: many of you have succumbed to the siren call of major global marketplaces, thinking you’d find digital salvation with minimal effort. I understand this temptation – these platforms promise immediate visibility and traffic. But at what cost?

The equation is unforgiving: by delegating your digital presence to these giants, you lose control of your most valuable customer data. You become dependent on opaque algorithms that can, overnight, change your visibility conditions or increase their commissions. Not to mention the customer relationship that completely escapes you.

I’ve met hundreds of merchants who suddenly realized they had built their house on someone else’s land. A Parisian jeweler recently confided: “After three years on this marketplace, I realized I didn’t even know my customers’ emails. How can I build loyalty under these conditions?”

It’s precisely to address this challenge that we developed the WISHIBAM model: an approach that allows retailers to take back control of their customer relationships and margins, while benefiting from digital power. Our phygital platform belongs to you – your data remains your data. You maintain total control over your brand image, pricing, and customer relationships.

Phygital, a Lever for Economic and Ecological Resilience

Beyond the commercial aspect, phygital is emerging as a major lever of resilience in the face of current economic and environmental challenges.

• Reduction of unsold items: Connecting stocks allows up to 23% fewer unsold items by boosting product visibility on all channels.
• Improved financial health: Partners see an average 17% reduction in their Working Capital Requirement (WCR) by optimizing product flow.
• Local ecosystem reinforcement: In Toulouse, 14% of purchases previously made on international platforms are now recaptured by local connected merchants.

“We’ve regained power over our business,” says Marie, manager of a decoration shop in Lille. “Before, we were subjected to competition from pure players. Now, we’re playing in the same league as them, but with our main asset: our physical presence and expertise.”

This local dimension of phygital creates a virtuous circle: purchases stay in the local economy, deliveries are shorter and therefore less polluting, and jobs are preserved in city centers.

How to Go Phygital Without Losing Your Soul (or Your Time)

Three Steps to Digitalize Your Business Without Denaturing the Human Experience

The transition to phygital frightens many merchants – and I understand them. The fear of losing the soul of one’s business, the authentic relationship with customers, or simply embarking on a time-consuming and costly project, are legitimate concerns.

Yet, a well-conducted phygital approach actually strengthens what makes your business valuable: the human element. Here are the three essential steps to succeed in this transition:

• Map Current and Desired Customer Journeys
  Before any technical implementation, take time to observe how your customers already interact with your brand. What are their friction points? What unmet expectations do they have? At WISHIBAM, we always start with this audit phase, which often reveals unsuspected opportunities. A striking example: a bookstore chain discovered that 62% of its customers consulted online reviews while in the store but couldn’t find this information on-site.
• Connect Stocks and Unify Data
  This is the fundamental technical step. Your inventory must become a unique resource, accessible from all channels. This generally involves integrating your checkout system with an e-commerce platform, and sometimes implementing a PIM (Product Information Management). This is often the step that worries merchants the most, but current solutions allow for rapid and minimally intrusive deployments.
• Train Teams in This New Approach
  Technology is nothing without the human who uses it. Your salespeople must understand how digital can enrich their relationship with the customer, not replace it. At WISHIBAM, we dedicate 40% of deployment time to training and supporting teams. Result: salespeople become the first ambassadors of phygital, as they immediately see its benefits in their daily work.

The Future of Retail is Phygital… and Local

If I had to summarize in one sentence the evolution of retail for the next 5 years, it would be this: tomorrow’s commerce will be phygital in form, but deeply local in essence.

Local authorities understand this well. More and more cities are investing in phygital solutions to revitalize their downtowns. In Angers, the metropolis financed 50% of the deployment of our solution to downtown merchants. Six months after launch, the commercial vacancy rate had decreased by 3 points and downtown foot traffic had increased by 8% on Saturdays.

In Strasbourg, it’s the merchants’ association that took the initiative, with support from the Chamber of Commerce. Their local marketplace, powered by WISHIBAM, now includes more than 230 connected businesses and generates additional annual revenue of 2.4 million euros that stays in the local economy.

These examples illustrate a fundamental trend: facing global e-commerce giants, the response is organizing at the local level, relying on the irreplaceable assets of physical commerce – expertise, advice, sensory experience – while adding the convenience of digital.

For independent retailers as well as national brands, the challenge is now clear: regain control of their digital destiny with solutions designed for them, not against them. Solutions that value their expertise and local roots, while giving them access to digital tools previously reserved for industry giants.

Phygital is not a threat to traditional commerce – on the contrary, it’s its lifeline in a world where digital has reshuffled all the cards. Provided, of course, that it’s approached with a clear strategy and partners who truly understand retail challenges.

Conclusion: Phygital is No Longer an Option, It’s a Necessity

The equation is simple: consumers have already adopted phygital behaviors. They navigate effortlessly between physical and digital, and their expectations evolve accordingly. Retailers who persist in treating these channels separately condemn themselves to a fragmented customer experience and, ultimately, obsolescence.

Phygital is not a passing fad or a simple technological evolution. It’s a profound transformation of how commerce works. A transformation that paradoxically restores full value to physical commerce, augmenting rather than replacing it.

At WISHIBAM, we accompany merchants daily in this transition. Whether independent or national brands, all observe the same thing: well-executed phygital doesn’t dilute their identity – it strengthens and amplifies it.

So, retailers, the question is no longer whether you should go phygital, but how to do it intelligently, preserving what makes you unique while meeting your customers’ new expectations. This is the exciting challenge we’re taking on together, day after day, to reinvent a more human, more local, and more resilient commerce.

FAQ: Everything You Need to Know About Phygital

Charlotte Journo-Baur, founder of WISHIBAM, recognized among the 0.1% most influential retail experts in Europe