Going “Phygital”: Retail Trends for 2025

Remember the last time you walked into a store?

Unless you were visiting a farmers’ market, your shopping journey likely began long before you stepped through the door. You probably browsed online, read reviews, or checked out the brand’s social media and what influencers were saying. If that sounds familiar, you’re in good company—over 55% of shoppers say they research products online before making in-store purchases.

A Generation Shift

But here’s the reality: many retailers are still operating as if it’s 2020, even though their customers are already living in 2025. Gen Z—now the largest consumer group—demands a completely different shopping experience. These digital natives shop via TikTok live streams, rely on social proof for their purchase decisions, and expect customer service to be as immediate as an Instagram DM. They no longer see a clear divide between online and offline shopping, yet many retailers treat social media as a passing trend and view chatbots as groundbreaking technology.

According to Shopify’s 2024 Holiday Retail Report, 55% of Gen Z shoppers make purchases on Instagram, and 51% do so on TikTok. But it’s not just the online experience they care about—Gen Z still values in-store discovery. This means retailers need to go beyond mobile and social media, crafting engaging omnichannel experiences that seamlessly blend the physical and digital worlds—the “phygital” experience.

Hybrid Experiences

Today’s shopping journey is more hybrid than ever, as consumers effortlessly switch between digital and physical channels. A customer might start in a brick-and-mortar store and then continue their experience online—perhaps spurred by a QR code—or begin online and finish their purchase in-store, either directly or through services like click and collect. The goal is to create a consistent, convenient experience no matter where the shopping journey takes them.

The most successful retailers aren’t simply adding more service channels—they’re rethinking the entire customer experience. Modern service means creating delightful moments in unexpected places: a fitting room that offers instant style advice, a mobile app that remembers your preferences across channels, or in-store technology that makes online returns a breeze. Consider Apple’s seamless transition from online browsing to in-store interaction, encouraging customers to touch and experience products before purchasing. Or look at VOX Furniture, a Polish company that has introduced the VOX BOX—a VR tool that lets you visualize new furniture in your own room.

Omnipresent AI

True omnichannel retail today wouldn’t be complete without AI. We’re entering an era of hyper-personalized shopping experiences, where vast amounts of data from both online and offline interactions help retailers understand customer intent, anticipate individual preferences, and deliver targeted promotions across channels. For example, Gucci is redefining luxury fashion by investing in AI to create deeply personalized experiences. By integrating eCommerce, social media, marketing, and mobile, Gucci offers a seamless user experience. Their AI tools provide staff with immediate insights into customer preferences and purchase history, enabling truly personalized support. From trend forecasting and inventory optimization to ensuring their offerings resonate culturally with younger shoppers, AI-powered solutions are transforming every aspect of the shopping experience.

Going Greener

It’s not just about digital innovation—sustainability is also reshaping retail. Gen Z is leading the charge with a strong commitment to eco-friendly shopping. Even amid economic challenges, climate-conscious purchasing is on the rise in 2025. Practices like carbon-neutral shopping and support for emerging sustainability solutions are quickly becoming the norm. These environmentally aware shoppers look for eco-friendly packaging and favor local products. In response, an increasing number of retailers are introducing in-store recycling programs and partnering with non-profits. Meanwhile, apps like Vinted have sparked a broader movement toward secondhand shopping, inspiring brands like IKEA to launch initiatives such as IKEA Preowned—a marketplace where you can buy and sell used IKEA furniture.