The debate between online and offline retail has been ongoing for years, but one thing is clear: physical stores are far from obsolete. Instead, they are evolving into dynamic spaces that prioritize customer experience over mere transactions. In this exclusive interview, Federica Dal Zotto, Training & Project; Head of Visual and Store Layout Developer at Adidas (Italy)—shares her expert perspective on the future of retail, the power of technology, and the role of physical stores in an increasingly digital world.
From the rise of “phygital” experiences to the importance of in-store engagement, Dal Zotto explores how brands can create meaningful connections with customers. She also highlights the growing influence of Gen Z and Gen Alpha in shaping retail trends, the strategic use of technology in stores, and the crucial balance between digital convenience and human interaction.
Join us as we dive into the key trends, challenges, and opportunities defining the future of retail with one of the industry’s leading voices.
Retail Interview – Federica Dal Zotto – Technology enhances retail
Will offline retail disappear?
The experience gained in the post-pandemic years has taught us that the physical store will never disappear entirely, nor will it ever be fully replaced by online shopping. While the retail landscape has drastically transformed compared to the past, today, the role of the store is primarily focused on creating an engaging experience for the consumer. This experience does not necessarily have to lead to an immediate in-store purchase; instead, it should activate a series of emotional and brand-driven levers that place the brand itself at the center of the consumer’s desire.
Today, rather than distinguishing between physical and virtual retail, we talk about “phygital”—a seamlessly interconnected environment where consumers try and test products in-store before purchasing them online. This approach highlights the complementary nature of digital and physical retail rather than presenting them as competing forces.
The physical store will never disappear—it will evolve
What are the defects and virtues of online retail compared to physical retail?
I don’t see weaknesses in physical retail—only opportunities. One of the greatest opportunities is leveraging the interests and behaviors of younger generations, particularly Gen Z and Gen Alpha. Studies show that these generations enjoy spending time in stores, testing products, and participating in interactive experiences.This trend benefits retail, as it allows brands to collaborate with marketing teams to create engaging experiences, such as live activations or exclusive events where consumers can meet their favorite creators, athletes, or brand ambassadors. These immersive experiences not only strengthen customer loyalty but also enhance the brand’s desirability.
Retail is no longer about physical vs. online; it’s about creating a seamless ‘phygital’ experience
What role does technology play in retail today? Does it help engage customers?
Technological tools are now essential in both marketing and in-store environments. They serve as indispensable instruments to capture consumers’ attention, communicate key brand messages, and inspire purchasing decisions. However, it is crucial to carefully analyze their placement and evaluate their use to avoid unnecessary financial investments.
Unlike a few years ago, when there was a boom in video content displayed on virtually every storefront, brands today are making more strategic and conscious choices. They first analyze the surrounding environment and foot traffic before implementing digital solutions. This shift reflects a more data-driven approach, ensuring that technology is used effectively rather than just for the sake of innovation.
Loyalty is built not just through efficiency, but through meaningful interactions and emotional engagement
What does it take for a store to work? Is there a magic recipe?
There is no magic formula for success in any industry or sector. What truly matters is experience, continuous research, and staying up-to-date with emerging trends. In a constantly evolving world, brands must remain attentive to everything around them, listening carefully to feedback from both consumers and in-store staff.
Sales associates, who interact with customers daily, are the true experts and the most direct link between brands and consumers. While technology has significantly improved our ability to understand customer preferences and interests, the human touch remains essential—especially in customer service.
Technology enhances retail, but the human touch remains essential
How is customer loyalty achieved? How do you engage your customers?
Technology has played a key role in enhancing customer convenience, with many stores now reducing or even eliminating traditional checkout counters in favor of digital kiosks. While this undoubtedly speeds up the purchasing process, one must question whether, in the long run, it benefits customer loyalty.
Loyalty is built not only through efficiency but also through meaningful interactions, emotional engagement, and personalized experiences. Striking the right balance between digital innovation and human connection is crucial to ensuring long-term customer retention.
The future of retail is less global, more local, and driven by sustainability
How do you see the future of retail?
I see the future of retail shifting towards a less globalized and more localized approach. We are already witnessing this trend take shape. Countries are becoming saturated with large shopping malls, and consumers are increasingly seeking shopping experiences within their own neighborhoods. This shift is largely driven by younger generations, who are more conscious of sustainability and prefer to support local businesses. Brands, in turn, have slowed their commercial expansion, opting for more strategic store openings rather than rapid growth. Significant examples can be seen in fast fashion giants like H&M and the Inditex group, which have deliberately reduced their expansion pace. In some cases, they have even closed stores that were too close to one another, instead choosing to enhance the remaining locations to improve the overall shopping experience.
More than just a prediction, this is my personal hope. I wish for brands to further embrace sustainability by promoting product reuse, investing in business models centered on second-hand sales, customization, and the restyling of pre-owned items. Slowing down mass production would be a positive step towards reducing waste and environmental impact.
Climate change is an increasingly critical issue that affects not only the planet but also the people living on it. The retail industry has a responsibility to play a role in this transformation, prioritizing sustainability over relentless production and consumption.
