As retail systems undergo rapid digital transformation, the integration of artificial intelligence across physical and digital channels is reshaping how value is created and experienced. This book offers a timely and interdisciplinary analysis of AI-enhanced retail ecosystems, examining their implications for consumer well-being, sustainability, and competitive advantage.

Bringing together perspectives from retail management, consumer behavior, service research, and innovation studies, the book develops a novel conceptual framework that positions phygital retail as a hybrid, human-centered model. It highlights how artificial intelligence can augment―rather than replace―relational and experiential dimensions of retail, enabling more integrated and meaningful customer experiences.

Grounded in a rigorous mixed-method approach combining qualitative interviews and quantitative analysis, the study provides empirical evidence that AI-enhanced phygital configurations are a key driver of consumer well-being, outperforming standalone physical or digital channels while reinforcing sustainability outcomes.

By focusing on small proximity retailers within increasingly platform-dominated markets, this book makes a distinctive contribution to contemporary debates on digital transformation, responsible innovation, and sustainable value creation. It will be valuable reading for researchers and postgraduate students across retail, marketing, and digital business disciplines.