More than 70 per cent of UAE retailers are now integrating digital tools into their physical stores, signalling a major shift towards omnichannel retail strategies, according to the The UAE Retailer Survey, conducted by Zoho Commerce, under the banner of global tech company Zoho Corp.
The survey, which gathered insights from more than 300 businesses, highlights the key trends, opportunities, and challenges in the UAE’s retail segment. The report shows that 57 per cent of UAE retailers operate both physical and digital storefronts, with nearly seven in 10 of them generating equal revenue from both channels.
Social media has become the leading discovery channel, with 69 per cent of respondents saying it’s where their customers first find their products — surpassing search engines and marketplaces.
This reflects a growing maturity in omnichannel commerce, as businesses adopt unified strategies that enhance convenience, reach, and personalisation. Retailers cited expanded market access, changing consumer behaviour, and the need for more tailored experiences as key drivers of this transformation.
Despite the boom in e-commerce, 50 per cent of UAEretailers plan to expand their physical footprint, with pop-up stores and in-store partnerships emerging as popular strategies to provide experiential value and instant gratification.
“The retail sector in the UAE is taking a more holistic and intelligent approach to commerce,” says Prashant Ganti, Vice President, Global Product Strategy, Finance and Operations, Zoho. “Our study shows retailers are building unified experiences by combining other online and offline channels, reflecting a trend in how a modern consumer purchases.”
“Social media has become the leading discovery channel, with 69 per cnet of respondents saying it’s where their customers first find their products — surpassing search engines and marketplaces.”
Ganti added, “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. Zoho is committed to supporting this evolution with our solutions like Zoho Commerce that help businesses build, market, and manage their online stores with ease, provide personalised customer experiences, and sell globally across multiple channels.”
Key insights from UAE retailers
Interestingly, one in three businesses that are operating completely offline gather feedback from online channels, a sign of how digital and physical engagement channels continue to become increasingly intertwined.
Speed and convenience also emerged as top consumer priorities. 54 per cent of the retailers report growing demand for faster delivery, and 49 per cent note rising expectations for same-day service. Retail businesses cite that the top reasons that their customers shop online are convenience and savings, while for in-store customers the key motivators are the ability to touch, try, and the satisfaction of taking the products home immediately.
“Common friction points for omnichannel customers include high shipping fees for online retailers, while limited staff availability, and long checkout lines contribute to customer drop-offs for retailers with physical stores.”
In response, retailers are investing in in-store technology: 64 per cent now offer mobile payments, and more than 60 per cent have implemented digital screens or tablets to aid product discovery. Nearly 70 per cent say in-store tech enhances speed and customer convenience.
However, omnichannel execution is not without challenges: 51 per cent of retailers struggle to balance online and offline operations, while others face logistics issues and rising operational costs. Common friction points for customers include high shipping fees for online retailers, while limited staff availability, and long checkout lines contribute to customer drop-offs for retailers with physical stores.
Looking ahead, nearly 60 per cent of retailers are investing in AI and machine learning to improve competitiveness, with key focus areas including seamless integration across channels, expanded payment options, and hyper-personalised experiences. Nearly half believe AI will fundamentally reshape the future of online retail.
