Retailers in UAE shift to omnichannel strategies
Seven in ten UAE retailers are integrating digital tools into their physical stores, signalling a major move toward omnichannel retail, according to The UAE Retailer Survey released by Zoho Corp.
The study, conducted by Zoho Commerce, gathered insights from more than 300 UAE businesses and highlighted the latest retail trends, challenges, and opportunities shaping the sector.
“The retail sector in the UAE is taking a more holistic and intelligent approach to commerce,” said Prashant Ganti, VP of Global Product Strategy, Finance & Operations at Zoho. “Retailers are building unified experiences by combining online and offline channels, reflecting how today’s consumer purchases. Those investing in digital tools and AI-driven buyer experiences will lead the next wave of growth.”
Key findings from the UAE Retailer Survey
- 57% of UAE retailers operate both physical and online stores.
- 70% report generating similar revenue from online and offline channels.
- 69% say social media is now the leading product discovery channel, surpassing search engines and marketplaces.
- 54% report rising demand for faster deliveries, while 49% note higher interest in same-day service.
- 64% of retailers now accept mobile payments, and more than 60% use digital screens or tablets to improve in-store product discovery.
Drivers of retail transformation
Retailers cited expanding market access, evolving consumer behaviour, and the growing need for personalised shopping experiences as the main drivers of transformation.
While e-commerce continues to grow, half of surveyed retailers plan to expand physical footprints, using pop-up stores and in-store partnerships to enhance experiential retail.
Challenges and friction points
Despite strong growth, retailers face hurdles in balancing online and offline operations.
- 51% noted difficulties in managing omnichannel execution.
- High shipping fees remain the biggest friction point for online shoppers.
- Limited staff and long checkout lines frustrate in-store customers.
Rising logistics and operational costs also add pressure to retailers trying to balance efficiency with customer expectations.
The role of AI in shaping retail’s future
Looking forward, 60% of UAE retailers plan to invest in AI and machine learning, particularly for:
- Channel integration
- Hyper-personalised shopping experiences
- Expanding payment options
- Streamlining logistics
Nearly half of respondents believe AI will fundamentally reshape online retail in the UAE, highlighting its role as a cornerstone of the sector’s digital transformation.
Zoho Commerce upgrades platform
Alongside the survey, Zoho Commerce also launched an upgraded version of its e-commerce platform, featuring a redesigned interface and advanced capabilities to meet evolving retail demands.
Conclusion
The UAE retail market is rapidly becoming one of the most advanced in the region, blending digital innovation with in-store experiences. With 70% of retailers already embracing omnichannel strategies and a majority planning to adopt AI solutions, the future of UAE retail promises to be smarter, faster, and more customer-focused than ever before.
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