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15 handpicked stocks

Retail Hybrid Model Growth Trends 2025

Costco's impressive sales growth, fueled by a 26.1% jump in digital demand, highlights the power of blending physical and online retail. This trend creates an investment opportunity in the e-commerce platforms, payment processors, and logistics companies that enable this successful hybrid model for all retailers.

Author avatar

Han Tan | Market Analyst

Published on October 9

Your Basket's Financial Footprint

Summary of total market capitalisation and composition for the 'Clicks And Bricks: The Future Of Retail' basket.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and performance that tends to track broad-market moves rather than outsize swings.
  • Suitable as a core holding for steady sector exposure, not as a highly speculative or short-term trading position.
  • Expect steady long-term value accumulation rather than rapid, short-term gains; growth is likely gradual and measured.
Total Market Cap
  • COST: $405.47B

  • SHOP: $216.30B

  • PYPL: $72.73B

  • Other

About This Group of Stocks

1

Our Expert Thinking

The retail landscape is transforming as traditional brick-and-mortar stores successfully blend with digital channels. Costco's remarkable 26.1% surge in digitally-enabled sales demonstrates that hybrid retail models aren't just surviving - they're thriving. This creates investment opportunities in both the retailers mastering this transition and the technology companies enabling it.

2

What You Need to Know

This group includes established retailers successfully integrating physical and digital footprints, plus the essential service providers powering this shift. These companies span e-commerce platforms, payment processors, and logistics services. It's a play on the entire retail ecosystem's digital transformation, not just individual store performance.

3

Why These Stocks

These stocks were handpicked by professional analysts to capture the full value chain of retail's digital evolution. From warehouse giants like Costco to e-commerce enablers like Shopify, each represents a different piece of the hybrid retail puzzle. They're positioned to benefit as more traditional retailers invest heavily in digital capabilities.

Why You'll Want to Watch These Stocks

🚀

Digital Transformation Accelerating

Costco's 26.1% digital growth isn't an outlier - it's the new normal. Retailers are rapidly investing in hybrid models, creating massive opportunities for the companies that enable this shift.

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Infrastructure Play on Retail's Future

This isn't just about individual stores - it's about the entire ecosystem powering modern retail. From payment processors to logistics providers, these companies benefit as every retailer goes hybrid.

Proven Winners and Hidden Gems

This collection includes both established retail giants successfully navigating digital transformation and the technology companies quietly powering their success behind the scenes.

Get the full story on this Basket. Read our detailed article on its risks and potential.

Read Full Insight

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