UAE retailers embrace omnichannel as 70% integrate digital tools in-store, shows survey

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Seven in ten UAE retailers are now integrating digital tools into their physical stores, signalling a major shift toward omnichannel retail, according to a new survey by global technology company Zoho Corp.

The study, conducted by Zoho Commerce and titled The UAE Retailer Survey, gathered insights from more than 300 businesses and highlights emerging trends, opportunities, and challenges in the country’s retail segment.

“The retail sector in the UAE is taking a more holistic and intelligent approach to commerce,” said Prashant Ganti, VP, Global Product Strategy, Finance & Operations, Zoho. “Our study shows retailers are building unified experiences by combining 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 report found that 57 per cent of UAE retailers operate both physical and digital storefronts, with nearly seven in 10 generating similar revenue from each channel.

Key drivers: What retailers say is making a difference

Retailers cited expanding market access, evolving consumer behaviour, and the need for personalised experiences as key drivers of this transformation.

Despite e-commerce growth, half of the surveyed retailers plan to expand their physical footprint, with pop-up stores and in-store partnerships emerging as popular strategies to provide experiential value.

Social media has become the leading discovery channel, with 69 per cent of respondents saying it is where customers first find products, surpassing search engines and marketplaces.

The survey also noted rising consumer expectations for speed and convenience, with 54 per cent of retailers reporting growing demand for faster delivery and 49 per cent noting a rise in same-day service.

Retailers are investing in in-store technology, with 64 per cent offering mobile payments and over 60 per cent deploying digital screens or tablets to aid product discovery. Nearly 70 per cent said in-store tech improves speed and customer convenience.

However, the report highlighted challenges in omnichannel execution, including balancing online and offline operations (51 per cent), logistics issues, and rising operational costs.

Common customer friction points include high shipping fees online and limited staff or long checkout lines in-store.

Looking ahead, nearly 60 per cent of retailers plan to invest in AI and machine learning to enhance competitiveness, focusing on channel integration, expanded payment options, and hyper-personalised experiences.

Nearly half believe AI will fundamentally reshape the future of online retail.

In other news, Zoho Commerce recently launched a new version of its e-commerce platform with a redesigned interface and enhanced features to support evolving retail needs.