Blending Physical Retail and Digital to Build Loyalty
Blending Physical and Digital Retail to Build Loyalty
Do your customers shop in-store, online—or a mix of both? Understanding where and how they buy is the foundation of any winning omnichannel retail strategy.
Just look at Home Depot. They’ve built a playbook for seamlessly blending physical and digital retail—what many now call a phygital retail strategy, which merges physical experiences with digital convenience.
And it’s working. The brand recently landed at No. 9 on YouGov’s list of America’s most respected brands. Their consistent presence across connected TV, digital ads, in-store retail media, and social content keeps them front and center—wherever customers are.
1. Know Your Customer
Home Depot’s strategy starts with clear customer segmentation:
Professional Contractors
Just 3% of shoppers, but 40% of revenue
Mobile-first (rarely use tablets or PCs)
Focused on specs, price, and inventory
Served through bulk discounts and real-time alerts
Everyday Consumers
Visit 4–6 times a year
Often need advice as much as products
Seek how-to content, home improvement tips, and personalized support—whether tackling a small fix or a major renovation
The brand message is woven into every aspect of their business—from the “How Doers Get More Done” TV campaign to executives rolling up their sleeves on the frontlines to stay in tune with customers.
Likewise, Walmart leans into localized experiences for value-driven shoppers, using TV to spotlight its expansive online selection through the “Who Knew” campaign, featuring Walter Goggins.
2. Integrating Physical Retail and Digital Experiences
Shoppers want flexibility. Over time, Home Depot expanded its omnichannel capabilities, adding layers of convenience:
Buy-online-return-in-store
Buy-online-pick-up-in-store
Buy-online-ship-to-store
Buy-online-deliver-to-store
These options make pickup and returns more convenient than ever.
They’ve even introduced augmented reality in their app so customers can see how products look in their homes—blending physical and digital retail to offer both ease and confidence.
3. Building Loyalty Through Experience
Educational content like DIY videos and buying guides may not drive immediate sales—but they build trust. Customers arrive more informed, more confident, and more likely to convert.
Whether online or in-store, Home Depot delivers a consistent experience through its phygital retail strategy.
Kroger applies a similar philosophy. The brand thrives in suburban and mid-sized markets thanks to:
Strong loyalty programs
A focus on fresh offerings
Private-label products that deliver value without sacrificing quality
They know their shoppers well—and tailor the experience accordingly.
The Takeaway
Retail leaders like Home Depot and Kroger win by meeting customers where they are—online, in-store, or both.
They:
Know their audience
Maintain awareness through consistent omnichannel advertising
Blend digital ease with in-person service to build lasting loyalty
The path to purchase may be complex, but success comes down to one thing: know your customer and make every moment count.
Nicky de la Salle is the Vice President of Growth at DirectAvenue. With more than 20 years of experience, including a decade at a “Big 6” global agency, in performance marketing and growth strategy, she is a proven senior leader with specializations in omni-channel marketing, eCommerce and digital marketing channels. Nicky has driven the performance marketing vision for Fortune 500, Entrepreneurs and Tech-Disrupters alike both in the US and internationally.
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