Shaping Retail Innovation. A Scenario-Driven Approach for Designing Phygital Retail Experiences

Due to technological transformations affecting production, distribution, and consumption patterns, the retail sector is among the most affected. This study explores the role of design in fostering innovation within a hybridised retail environment where physical and digital dimensions converge, resulting in what is known as phygital retail. Phygital retail refers to the integration of physical and digital elements to create engaging and interconnected shopping experiences. This research builds on the pilot project ‘Shaping Retail Innovation’, conducted in collaboration with the Design & Customer Experience – Innovation Division of Deutsche Telekom. It examines the effectiveness of adopting Design-Orienting Scenarios (DOSs) in a multidisciplinary context. DOSs support the envisioning of future retail experiences by incorporating advanced customer-facing technologies. This chapter presents a methodological framework for applying DOSs in retail design to promote meaningful technology integration. It also demonstrates the potential of DOSs in enabling multidisciplinary collaboration between retail design and technology, guiding the design process towards innovative and future-oriented solutions. The results highlight how a scenario-based approach can support retail design in responding to the current dynamics of transformation from technology-driven to meaning-driven innovations, thus defining the future of phygital retail.