Merging Digital and Physical – How Retail Marketing In 2026 Needs A Hybrid Approach

A year ago we talked about how digital collaboration can boost a shopping centre’s online presence. But in 2026, a strategy that combines both digital and physical is a must-have for any retail space.

If you’re serious about meeting the needs of hybrid customers who move seamlessly between shops and screens, you need a truly joined-up approach.

Why does hybrid marketing matter so much?

A blended strategy combining elements like digital, social, PR and in-person events can turn campaigns into experiences that drive footfall, sales and loyalty. And trends show that the blending of physical and digital marketing (or ‘phygital’) is something that many shoppers feel positive about.

Recent US research by Deloitte indicates 73 percent of ‘Gen Z’ shoppers (born between 1997-2012) still buy in-store at least once a week.

And despite the continued growth in online shopping, smarter retailers are realising that an ‘omni-channel’ approach is best.

Investing in innovations like customer engagement platforms and point-of-sale payment solutions, they’re increasing reach and unifying customer experiences. It’s not about abandoning your physical premises, or ignoring new technology – it’s simply combining multiple approaches to delight your customers.

PWC data shows global spend on retail technology should grow 10 percent annually between 2024-2028 (up four percent on the previous four-year period).

But this spend – whether it’s on apps, augmented reality (AR), data management or other channels – shouldn’t be at the expense of physical spaces. A wealth of research indicates that people increasingly incorporate digital touchpoints into their buying journeys, including:

  • Reading online reviews
  • Virtual/AR product demonstrations
  • Forum discussions
  • Brand social media platforms
  • Video reviews and comparisons

But a similar weight of evidence shows that many people still prefer to complete the final sale in store. 

Digital – the start (but not the only part)

The ‘journey’ into a shopping centre might start days before the physical trip, with a Google search or targeted email campaign. Retailers that treat online shopping as solely separate to ‘in-store’ risk missing customers who (for example) research online but still want to buy in person. And by digitally signposting to in-centre events, promotions and brand activations, businesses can turn online attention into real-world visits.

People are sharing more than ever on social media – but often, what gets the most engagement is in-person experiences. Seasonal markets, pop-up food and drink concessions, entertainment performances and more are all opportunities to reach new audiences online.

And it works both ways – data on search queries and browsing behaviour can inform which installations, events and promotions will work best for your space.

How can I get phygital?

It’s time to reap the benefits of a blended strategy for retail marketing, where digital and physical complement and enhance each other. Everything from in-store collaborations with online influencers to live streams can combine the impact of digital with the power of human connections.

To learn more about how a hybrid marketing approach could work for your business, please get in touch.