Many people talk about “connected commerce”: the blending of physical retail and digital business. But what does that actually mean for the point of sale (POS) in practice?

I clearly remember going shopping with my parents as a child. I grew up in a city, so I already had the luxury of choosing between several clothing stores. Still, it often came down to this: there were 10 sweaters, 8 pairs of jeans, and 20 T-shirts, and if I had something specific in mind, like a particular color or brand, I usually had to compromise.

Now I have children of my own. And today, if I’m looking for a yellow T-shirt with a dark blue skateboard on it, I can be sure I’ll find dozens of options – never mind the ability to design a custom shirt.

So what does that mean for brick-and-mortar retail? Where is it heading?

I’m a payments expert, so I can only speak with real authority about one aspect of physical retail. But what we observe in payments also offers broader insights for retail as a whole.

Online or offline? People want both

For some time now, it’s been clear that physical and digital commerce are increasingly merging. Consumers no longer want to choose between in-store and online shopping. A recent representative survey by the polling institute INSA Institute for New Social Answers, commissioned by Unzer, shows that 41.5% of respondents want to combine the best of both worlds. They’re looking for a connected retail experience that offers convenience, security, and choice.

In practice, that means being able to switch seamlessly between online and offline channels. For example: buying a product in-store and having it delivered home, or checking it out in a shop, then purchasing it via a mobile app.

Data silos are holding retailers back

It sounds great—but it’s complicated. In my view, the biggest challenges are organizational silos and fragmented data.

The first issue is probably the bigger one. In reality, POS operations and e-commerce often run separately. And for companies operating across multiple markets, things get even more complex, with different regional units and varying payment methods.

The result? Data silos. Systems and applications aren’t (or are only partially) integrated, and they don’t communicate effectively. This leads to frustration for customers when, for example, vouchers aren’t accepted everywhere or returns become a hassle. Meanwhile, retailers sit on valuable data they can’t fully leverage.

So how can businesses meet local customer needs while delivering a consistent experience across online and offline channels? And how should they structure their organizations? These are the questions many companies are grappling with.

Unified commerce is the need of the hour

The good news: at least on the data side, solutions exist. Unzer, for example, recognized this trend early and developed a modern platform that brings all data together in real time in one central place. Through a dashboard, retailers can view their revenue, inventory, orders, products, and customers’ payment preferences.

With these insights, they can plan inventory and staffing as efficiently and effectively as possible. The platform becomes the central hub for customer, sales, and product data.

This brings several advantages. No matter where or how customers pay or receive their goods, all data flows into a single system in real time, creating full transparency. It simplifies processes, reduces technical complexity, and saves both time and costs. Most importantly, it enables online and offline shopping to merge into a seamless experience.

Which brings us back to the original question: where is the POS heading?

I’m convinced the future of shopping is hybrid. If people know exactly what they want, they’ll increasingly order online. Of course, the “last mile”—the final leg of delivery to the customer’s door—remains a challenge for logistics and the environment. But solutions are emerging that promise to be both more sustainable and more cost-efficient.

Online is about convenience, offline is about experience

But when people shop in-store, they expect an experience. The decline of traditional department stores illustrates this quite starkly. Simply browsing shelves is no longer enough. The trend is toward smaller assortments, but richer experiences and better service.

Live music in shop windows, cafés and street food inside stores, followed by a yoga class or an after-work run to meet like-minded people—these are just a few examples. They all point to the same thing: customers are looking for experiences and community, not just products.

Unified commerce aims to create a seamless customer journey, and that challenge has only grown as consumer behavior evolves. Today, people expect more than products in shopping centers; they’re looking for meaningful experiences. For instance, Berlin’s Gesundbrunnen Center now offers walk-in Botox treatments and drip bars, raising the bar for service and in-store experience.

Many retailers have firmly set their sights on unified commerce. A recent Unzer survey of over 100 companies in Germany, Austria, and Switzerland confirms this:

• 66% believe they won’t remain competitive long-term without it

• 74% see it as more effective than technologies like the metaverse or blockchain for attracting and retaining customers

• 79% emphasize its importance for increasing revenue and building lasting customer relationships

Hybrid horizons

Connected commerce isn’t a question of if, but when. It may take longer than customers would like, but the shift is underway. One final figure from the same study: nearly half of the retailers surveyed are already using centralized software to link their online and in-store business. The journey has begun.