What Now for Phygital, with the Metaverse’s Days Numbered?

For a while, the future of retail was imagined as something almost entirely virtual. Brands were building digital stores, experimenting with avatars, and exploring new ways to show up in the metaverse. The ambition was exciting: create immersive spaces where people could discover, browse, and interact with brands without stepping into a physical store.

But today, the conversation has shifted.

As metaverse hype slows down, the more practical question for retailers is how digital technology can make real-world shopping better, easier, and more connected. That is where phygital is finding its real relevance.

Not as a buzzword or a futuristic experiment, but as a way to bring together the strengths of physical retail and digital intelligence. The store still matters. So do apps, websites, loyalty platforms, digital screens, payment systems, and customer data. The opportunity now lies in making all of these touchpoints work together in a way that feels seamless to the shopper.

A recent article in The Drum explored this shift, asking what comes next for phygital now that the metaverse no longer dominates the conversation. The key takeaway is clear: phygital retail is moving away from spectacle and towards usefulness. The future is less about building immersive digital worlds, and more about using technology to remove friction, personalize experiences, and connect online and offline journeys in smarter ways.

In The Drum article, Jasvinder Singh Bindra, our Director of Commerce Media, shared his view on where phygital retail is heading next: away from hype, and towards more useful, connected shopping experiences.

He talks about how the future of phygital retail is about making shopping easier by connecting stores with digital technology. When retailers use customer data from websites, apps and loyalty programs, they can understand shoppers better and offer more relevant products and offers.

AI helps do this quickly and at the right moment, both online and in-store. Some retailers are already doing this well. Walmart and Tesco use digital screens in stores and mobile apps to show offers that match what customers are interested in. Sephora uses its app and offline store data together, so that shoppers get personalized advice and product suggestions. Amazon’s Just Walk Out stores make shopping faster and also help retailers learn how customers shop, so experiences can keep improving.

The best phygital experiences do not feel complicated or pushy. They feel simple and helpful where technology supports the shopper naturally, helps brands reach the right people and makes buying easier from start to finish.