Impact of Phygital Retailing Strategies on Customer Satisfaction and Loyalty in Lulu Hypermarket, Nizwa, Sultanate of Oman

Abstract

Aims: This study investigates the association of phygital retailing strategies on customer satisfaction and loyalty in Lulu Hypermarket Nizwa. Study Design: This causal, quantitative study collected 361 valid responses from shoppers, with a 93.28% response rate. Place and Duration of Study: The study area is Lulu Hypermarket, Nizwa, Sultanate of Oman. The period of study is from September 2024 to May 2025. Methodology: The population of shoppers visiting Lulu is 28769 (Lulu Management database, October, 2024). The sample size is determined as 379 (Krejcie and Morgan, 1970). This sample size is collected from physical shoppers, online shoppers, buy in store, deliver at home and click and collect customers. Proportionate sampling is used by the researchers to collect the samples from each category of shoppers. Primary data is collected with the help of a structured questionnaire. Results: The analysis explores how strategies like self-checkouts, online ordering, and digital displays enhance the shopping experience and strengthen brand loyalty. The correlation between satisfaction of phygital strategies and future purchase indicates a weak positive degree of correlation. The correlation between satisfaction of shopping mode and future purchase indicates a weak positive degree of correlation. Although the regression results are statistically significant, they explain only a small percentage of variance in future purchase behavior, indicating the influence of other unexamined variables. The satisfaction of shopping modes contributes only 7.5% to future purchase of shoppers. It is proved that gender has significant influence on the usage of self service checkout counter, Instore reviews, security scanner and digital display board. At the same time, it is concluded that there is no relationship between gender and frequency of usage of phygital strategies. Age has a significant influence on usage of phygital strategies. It is proved that age has significant influence on self service check out counter, security scanner and usage of happiness loyalty rewards. Conclusion: Phygital retail strategies are becoming increasingly important as shoppers embrace the blend of physical and digital experiences. Customers report satisfaction, especially with features like mobile apps, self-checkout, and digital payments, which enhance convenience.