From clicks to bricks: why digital brands are turning to physical stores to build deeper connections

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The new age of retail is phygital

In an era dominated by digital shopping and ecommerce giants, it might seem counterintuitive for digital-first brands to invest in brick-and-mortar locations. But companies like Netflix, Wayfair, Warby Parker, and Everlane are challenging that logic and proving that physical retail isn’t dead—it’s being reborn. Their stores aren’t just about making sales. They are about creating immersive brand experiences, deepening customer relationships, and crafting moments that digital alone can’t deliver.

The future of retail is not a battle between physical and digital; it is a harmonious blend of both. Known as “phygital,” this strategy fuses the best of e-commerce’s convenience with the emotional resonance of in-person experiences. Let’s explore how digital-native brands are redefining the role of retail stores and reshaping the customer journey in the process.

Retail as a brand storytelling, not just a sales channel

Historically, the success of retail stores was measured by revenue per square foot. Today, however, brands are shifting their focus toward engagement, loyalty, and brand resonance. Brick-and-mortar is no longer merely transactional—it’s experiential.

Take Netflix, for example. With plans to open physical stores by the end of 2025, the streaming giant is embracing a new way to engage its audience. But Netflix isn’t interested in selling DVDs or upselling subscriptions. Instead, imagine stepping into the world of Stranger Things, The Witcher, or Bridgerton through immersive, experiential environments. These spaces aim to create memories, deepen emotional connections, and turn fandom into physical interaction.

It’s brand marketing at its most powerful.

Netflix isn’t alone. Warby Parker has successfully blended its e-commerce roots with physical retail locations where customers can try on frames, receive expert advice, and enjoy the same digital conveniences in-store through virtual try-ons and connected experiences. The store becomes a tactile showroom that reinforces the brand’s values and enhances trust.

The value of touch, feel, and try-before-you-buy

For all its scale and convenience, digital shopping still can’t replicate the sensory experiences of a physical store. Customers want to feel the fabric, sit on the furniture, and see the true color of a product in natural light. That’s where Wayfair’s expansion into physical retail becomes strategic.

In May 2024, Wayfair opened a massive 150,000-square-foot flagship store in Wilmette, Illinois. Far from a typical showroom, the space includes housewares, home improvement products, and even an in-store restaurant called The Porch. The goal? To create a holistic, lifestyle-driven shopping experience that goes beyond browsing to full immersion in the brand’s universe.

By offering spaces where consumers can engage all five senses and imagine how products will work in their own homes, Wayfair is turning stores into design destinations. These touchpoints are hard to replicate online and are vital for trust, upsell, and brand affinity.

Expanding KPIs beyond revenue

If physical stores are to serve as brand ambassadors, then CMOs must reconsider how they measure success. Retail metrics need to expand beyond just revenue to include:

• Foot traffic and in-store dwell time
• Engagement levels with interactive displays and events
• Social media shares and user-generated content from visits
• Customer loyalty and repeat visits after in-store experiences

Apple provides a stellar example. Its stores function as hands-on product showcases, tech support centers (Genius Bars), and community spaces. Even with strong online sales, Apple continues to invest heavily in retail because these locations serve multiple roles in the customer journey—education, engagement, service, and evangelism.

Meanwhile, Amazon’s evolving journey through physical retail—including Amazon Go, Amazon 4-Star, and its acquisition of Whole Foods—proves that stores must do more than just offer convenience. Amazon has learned that stores must add value beyond the online experience. For grocery and tactile goods, immediacy, local context, and curated experiences matter.

Customer-centric design is the future of retail

The digital-native brands that are thriving in physical retail have one thing in common: they design their stores around their customers, not around inventory or operations.

Everlane is a strong case in point. Long skeptical of physical retail, the brand changed course after recognizing strong customer demand for in-person experiences. When it opened its first store in 2017, it found success by staying true to its minimalist aesthetic and transparent brand ethos. Customers still wanted to touch the product and engage with knowledgeable staff—needs that online alone could not fulfill.

The most successful stores act as:

• Brand discovery centers
• Engagement hubs
• Experience-driven destinations

This is a far cry from the traditional retail model focused on product availability and inventory turnover. Instead, it’s about how the space makes people feel.

Blending digital tools into the physical experience

Digital-first brands entering retail don’t abandon their tech-savviness; they amplify it. Many are using technology to enhance in-store experiences in creative and personalized ways:

• Virtual try-on tools embedded in mirrors or displays
• Interactive product recommendation kiosks based on AI
• Mobile checkout and self-serve payment stations
• QR codes linking to customer reviews or how-to videos

By bringing their digital strengths into physical environments, these brands create a cohesive omnichannel experience. Customers can begin their journey online, visit the store for discovery and validation, and return online to complete the purchase or reorder. It’s seamless.

Community and events as a core strategy

Another growing trend among digital brands going physical is the use of space for community-building events:

• Product launches
• Workshops and classes
• Influencer meet-and-greets
• Brand collaborations

These events encourage repeat visits, build emotional bonds, and generate valuable word-of-mouth marketing. They also make the store feel less like a commercial space and more like a cultural destination.

Brands like Glossier and Allbirds have embraced this approach by designing stores that are part retail, part event space, and part content studio.

Lessons for marketing leaders

For CMOs, the retail return isn’t about nostalgia; it’s about strategic advantage. Physical stores offer:

• Direct, sensory-based customer engagement
• Controlled brand storytelling environments
• Unique data and insights not captured online
• Stronger conversion rates in high-consideration categories

But success requires rethinking the store’s purpose. It’s not just about selling products—it’s about creating emotional experiences that drive long-term loyalty.

Marketing leaders must work closely with store designers, operations teams, and digital marketers to ensure that physical spaces are aligned with the brand’s voice and business goals.

Conclusion: physical stores are the new flagships of brand experience

Far from being relics of a pre-digital age, physical stores are emerging as crucial pillars of modern brand strategy. For digital-first companies like Netflix, Wayfair, Warby Parker, and Everlane, investing in brick-and-mortar locations is about far more than sales—it’s about storytelling, experience, and emotional engagement.

In a crowded, convenience-driven online marketplace, physical stores offer something invaluable: human connection. They bring the brand to life in tangible ways that leave lasting impressions.

The question isn’t whether to open physical stores. It’s how to use them to create unforgettable brand moments. And for forward-thinking brands, that’s not just a strategy—it’s the future of retail.