Retail signage influences every part of the in-store customer journey, from capturing attention at the window to guiding product discovery and driving purchases. And in 2025, signage is more important than ever.
According to the National Retail Federation, physical retail is entering a new phase of growth. In-person shopping is evolving fast. The NRF predicts that "live shopping has been smoldering for years; in 2025, it will catch fire." Today's physical stores are expected to deliver customer experiences that go far beyond transactions. They must foster an engaging brand identity, promote lasting loyalty, and offer meaningful moments that no one can replicate online.
Signage plays a pivotal role in creating those experiences. From immersive displays to personalized digital messaging, signs shape the emotional and functional environment in your retail stores. Selecting the right signage can boost sales, attract repeat customers, and shape how people perceive your brand. This matters whether you're opening a new store or updating an existing one.
At Phase 3, we partner with retail leaders to produce signage, displays, and environments that perform. (Read more about the materials and processes we use for large-format signage printing here and here.) Our team also fabricates and installs display solutions that meet your brand standards, campaign goals, and customer expectations which you can learn more about in our blog, “Enhancing the Customer Experience with Strategic POP and POS Program Management.”
This guide highlights the key differences between digital and traditional signage. It covers cost, flexibility, maintenance, and impact. Use this information to choose the best signage option for your retail space.
What is the Difference Between Digital and Traditional Retail Signage
Traditional retail signage includes printed or fabricated signs and displays including:
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Vinyl banners
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Hanging posters
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Point of sale and display signs, labels, shelf talkers, etc.
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Window graphics
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Backlit displays
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Exterior building signage
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Three-dimensional displays using metal, acrylic, wood, glass, plastic, or unique items.
These materials are excellent for permanent installations, such as wayfinding or exterior signage. They also work well for temporary uses, like seasonal promotions or pop-ups. At Phase 3, we design, print, and/or fabricate displays that balance aesthetic, durability, and environmental conditions. Read more about our fabrication capabilities in our blog titled "Imagining Possibilities: Inside Phase 3's New Fabrication Studio."
Digital signage involves electronic displays, such as:
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Interior and exterior LED or LCD screens
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Interactive kiosks
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Video walls
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Digital menu boards
These displays are powered by software platforms that can schedule, rotate, and update content remotely, making them ideal for dynamic environments.
Hybrid Signage: Embracing the "Phygital" Movement
The space between digital and physical retail is blurring, and signage is evolving with it. As the "phygital" movement gains traction, retail stores are merging digital technology into their bricks-and-mortar sign packages to deliver a seamless, interactive customer experience.
Hybrid signage strategies bring together the strengths of both digital and traditional formats. For example:
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A branded display fixture may be paired with an interactive screen to deepen engagement.
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A window graphic can incorporate QR codes that lead to exclusive mobile content.
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A pop-up space might feature traditional signs for wayfinding alongside digital kiosks for product education or ordering.
This approach reflects broader consumer expectations. Retail experts like Jason Goldberg say shoppers want real-time information. They look for ratings, reviews, and quick service, even in stores. Innovative retailers are using digital signage and immersive tech to increase customer convenience and strengthen connections.
Learn more about Phase 3’s approach to hybrid environments by reading this article: “The Future Is Phygital.”
Cost Considerations and ROI: Upfront vs. Long-Term
Upfront and Long-term Costs
Traditional signage often carries lower upfront costs, making it appealing for short-term campaigns or limited budgets. However, updating traditional signs regularly in a fast-paced retail setting is challenging, especially if you operate multiple locations.
In contrast, digital signage requires a significant investment in software and equipment. Yet, it can be less expensive to maintain when running frequent promotions or managing many locations that need consistent, coordinated updates.
One way to address the scalability issue with traditional marketing is the deployment of a centralized digital marketing management solution, such as Phase 3's Media:Link. Read more about that strategy here and here.
Meauring ROI
Justifying the cost of signage often comes down to measuring its impact. That's traditionally harder to do with print signage. Because it's a passive, static format, print relies on factors like size, placement, color, and typography to influence customer behavior. These subtle cues are difficult to isolate or measure. A printed sign may include a call-to-action or special offer, but it's rarely clear whether that signage was the deciding factor in a purchase.
Digital signage allows retailers to gather both active and passive customer data, which they can integrate into broader marketing and sales campaigns. Touchscreens, voice commands, and RFID interactions track active use. Sensors and camera vision systems passively capture impressions, dwell time, and even eye movement. These insights inform everything from content strategy to in-store layout.
Flexibility and Speed to Market
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Traditional signage requires more lead time:
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Graphic files must be prepared, approved, and sent to print
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Materials must be sourced
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Signs and displays must be printed or fabricated, kitted, shipped, and installed.
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Updates require redesigning, reprinting, reshipping, and reinstallation
However, some solutions offer more flexibility. Systems like Visual Magnetics enable interchangeable graphics on reusable surfaces, allowing for quick and cost-effective swaps. If you change certain signs or displays only once or twice a season or the changes you make are minimal, these signage systems may offer a better value.
Once installed, digital signage provides speed and control:
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A central dashboard allows retailers to change content in just seconds.
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Retailers can customize messages to location, time of day, season, promotion, or customer behavior.
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Scheduling capabilities and real-time updates keep your messaging and images fresh
If your promotions or content shifts frequently, digital signage provides the flexibility to keep up with competition and customer demand.
Maintenance and Durability
No matter the type of sign and your objectives, durability improves ROI. For traditional signage in high-traffic areas, opt for materials such as metals, acrylics, vinyl, and tempered glass that resist damage and wear. Use a printing method and ink that is fade-resistant. Adding a laminate layer can protect printed graphics from fading. Regular cleaning and proper care help prolong the lifespan of traditional signs, especially those exposed to the elements.
Digital signage, on the other hand, requires ongoing maintenance for the lifespan of the screen, power needs, and potential software updates. Planning ahead reduces unexpected costs.
Customer Engagement and Signage Effectiveness
Effective retail signage requires an eye-catching design and a strong call-to-action (CTA), the right materials, proper installation, and ongoing maintenance to perform as intended. Without attention to these details, even the best designs can fail to deliver. Why? Because shoppers demand it.
According to shopper research:
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Shoppers notice only 15–20% of in-store signage on average.
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Viewing time averages just 2 seconds.
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Despite that, roughly 60% of businesses see a 10% increase in sales after updating signage.
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36% of consumers visit a new store based on signage alone.
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41% make quality assumptions about a business based on signage appearance.
Here’s the bottom line. Signage works, but only if it's seen.
Digital signage advantages
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Animated visuals and sound draw attention
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Interactive elements encourage engagement
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Real-time updates respond to trends or events
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Personalization opportunities enhance the customer experience
Traditional signage advantages
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Often perceived as more premium or elegant
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Cultivates a more tactical, hands-on product shopping experience
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Custom finishes and materials can align closely with brand aesthetics
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No power or tech is required. It's reliable in any setting.
Read our recent blog, "10 Common Signage Mistakes and How to Avoid Them," for more insights on creating the best signs for your store.
Sustainability and Environmental Impact
At Phase 3, we're conscious of the environmental impact of utilizing printed materials. We offer options for sustainable printing methods, materials, and inks. For example, we can print fabric signs and then repurpose them into tote bags once no longer needed. We can also design signage systems that feature reusable graphics. Read more about our commitment to sustainable printing practices on our blog.
On the digital side, LED screens are becoming more energy-efficient, but planning for end-of-life recycling remains a challenge.
Use Case Scenarios: Which Should You Choose?
Now that you know the ins and outs of traditional versus digital retail signage, which should you choose for your business? Base your decision on your store environment, customer, marketing campaign objectives and timeline, and budget.
Traditional Signage Examples
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A luxury fashion retailer updates their window quarterly with branded vinyl graphics and 3D-fabricated product displays.
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A health and beauty brand rolls out in-store POP kits for the Christmas season.
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A grocery chain uses overhead signs for wayfinding and printed shelf talkers for endcap promotions.
Digital Signage Examples
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A QSR franchise uses digital menu boards to update products and promotions throughout the day
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A fitness retailer displays product how-to videos in-store
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A mall-based tech store rotates product features daily on a video wall
Phygital Strategy Examples
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A pop-up activation for a new video game uses branded fabric banners alongside interactive product kiosks.
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A department store installs a permanent digital screen for wayfinding at the entrance but uses printed stanchion signs or displays for sales promotions.
It's Time to Wow your Customers
Let’s be clear. Traditional print marketing isn’t dead. It’s innovating.
Choosing between (or combining) digital and traditional retail signage is a critical business decision. Both formats have unique advantages depending on your needs. Before you decide, consider these factors:
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How often your content changes
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The type of experience you want to create
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The available resources (budget, team, locations, space, and time)
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Your expected ROI, both in the short and long-term
At Phase 3, we specialize in the strategy, design, production, and installation of signage that helps retail brands stand out and scale. Whether you need durable exterior signs, 3-D window displays, or high-impact promotional banners, we’ll deliver it with precision and style.
Let’s make your retail signage work smarter. Browse our signage capabilities and display solutions, or contact us today to discuss your unique needs.