UAE Retailers Embrace Omnichannel Strategy with 70% Integrating Digital Tools In-Store: Zoho

According to a new study by Zoho Commerce, 70% of retailers in the UAE are now integrating digital tools into their physical stores, signaling a significant shift towards an omnichannel retail strategy. The “UAE Retailer Survey” gathered insights from over 300 businesses and highlights key trends, opportunities, and challenges in the retail sector.

The study found that 57% of UAE retailers operate both physical and digital storefronts. Among these, nearly 70% generate equal revenue from both channels, which indicates a growing maturity in omnichannel commerce. Retailers cited expanded market access, changing consumer behavior, and the need for more tailored experiences as key drivers for this transformation.

Prashant Ganti, Vice President, Global Product Strategy, Finance & Operations at Zoho, stated that, “The retail sector in the UAE is taking a more holistic and intelligent approach to commerce”. He added, “Our study shows retailers are building unified experiences by combining other online and offline channels, reflecting a trend in how a modern consumer purchases. As the country’s retail sector continues its digital evolution, businesses that invest in the right tools, including AI to enhance buyer experience will lead the next wave of growth.”

The survey also highlighted the continuing importance of physical stores, with 50% of retailers planning to expand their physical footprint. Pop-up stores and in-store partnerships are emerging as popular strategies to provide experiential value and instant gratification.

Key findings from the report also reveal:

• Social media has become the leading discovery channel, with 69% of respondents saying it’s where customers first find their products, surpassing search engines and marketplaces.
• One in three businesses that operate completely offline are using online channels to gather feedback, showing how digital and physical channels are becoming more intertwined.
• Consumer priorities are shifting towards speed and convenience, with 54% of retailers reporting a demand for faster delivery and 49% noting a rise in expectations for same-day service.

In response to these demands, retailers are investing in technology, with 64% now offering mobile payments and over 60% implementing digital screens or tablets to assist with product discovery. Nearly 70% believe that in-store technology enhances speed and customer convenience.

Despite the growth and investment, omnichannel execution still faces challenges. 51% of retailers struggle to balance online and offline operations, while others face issues with logistics and rising costs. For customers, common points of friction include high shipping fees for online orders and limited staff or long checkout lines in physical stores.

Looking ahead, nearly 60% of retailers are investing in AI and machine learning to improve competitiveness, with a focus on seamless integration, expanded payment options, and personalized experiences. Nearly half of the businesses surveyed believe AI will fundamentally reshape the future of online retail.