A sweeping shift toward omnichannel retail is unfolding across the UAE, with a majority of retailers weaving digital tools into their physical spaces. A new survey from Zoho Corp highlights that seven in ten UAE retailers are now integrating digital capabilities within brick-and-mortar stores, signaling a holistic move to align online and offline experiences. The findings, drawn from more than 300 businesses through Zoho Commerce’s UAE Retailer Survey, paint a detailed picture of how retailers are responding to evolving consumer behavior, technology adoption, and the competitive landscape in the country’s vibrant retail sector.
Overview of the UAE Retailer Survey
The UAE Retailer Survey is a comprehensive study conducted to explore the latest trends, opportunities, and challenges facing retailers in the country as they navigate a rapidly digitalizing market. Zoho Commerce, the research arm behind the survey, gathered insights from a robust sample of more than 300 businesses operating across various retail segments. The aim was to capture how retailers are balancing the needs of a modern, digitally oriented consumer with the realities of operating physical stores.
A central takeaway is that the retail sector in the UAE is adopting a more holistic and intelligent approach to commerce. Retailers are actively building unified experiences by blending online and offline channels, a trend that mirrors how consumers prefer to shop in today’s environment. As the market continues its digital evolution, the study suggests that businesses willing to invest in the right tools—particularly those enabled by artificial intelligence to elevate the buyer experience—are poised to lead the next wave of growth. The emphasis on integrated experiences reflects a broader strategic shift toward seamless transactions, unified data, and consistent service, regardless of the channel a customer chooses.
The report notes that a majority of UAE retailers already operate across multiple touchpoints. Specifically, 57 percent of respondents run both physical and digital storefronts, indicating that a significant portion of the market recognizes the value of maintaining a tangible presence while expanding digital reach. Moreover, nearly seven in ten of the surveyed retailers report that the revenue generated from each channel—online and offline—is comparable, underscoring the importance of treating physical stores and digital storefronts as equal contributors to overall performance rather than as distinct silos. This parity in revenues reinforces the case for omnichannel strategies that deliver consistent experiences and pricing across channels.
The study also captures broader sentiments about the strategic drivers shaping this transformation. Retailers identify expanding market access, shifting consumer behavior, and the demand for personalized shopping experiences as the key catalysts propelling the shift toward integrated channels. Even with the continued growth of e-commerce, the survey shows a noteworthy commitment to physical retail: about half of the respondents plan to broaden their physical footprint, leveraging pop-up store concepts and in-store partnerships to deliver experiential value and engage customers in new ways. Pop-ups and partnerships are highlighted as flexible, low-commitment approaches to test new formats, reach new audiences, and create memorable, hands-on experiences that digital channels alone cannot fully replicate.
An important strategic dimension highlighted by the survey is discovery and reach. Social media has emerged as the leading discovery channel, with 69 percent of respondents indicating that customers first encounter products on social platforms. This surpasses traditional search engines and marketplaces, signaling a shift in how brands attract attention and drive traffic. The data imply that social channels are serving as critical gateways to brand awareness, product discovery, and ultimately, purchase decisions, thereby amplifying the importance of social commerce strategies and influencer partnerships in the UAE market.
Beyond discovery, consumer expectations are accelerating in terms of speed and convenience. A notable 54 percent of retailers report growing demand for faster delivery, while 49 percent observe a rise in same-day service expectations. These trends suggest that speed is increasingly becoming a differentiator, and retailers are responding by rethinking logistics, last-mile capabilities, and in-store workflows to meet and exceed customer expectations.
Technology adoption in-store is also a focal point of the survey. Sixty-four percent of retailers offer mobile payments, signaling a broad acceptance of contactless and mobile-based checkout options. More than six in ten retailers are deploying digital screens or tablets to facilitate product discovery and informational support, while nearly 70 percent say that in-store technology improves speed and customer convenience. Taken together, these findings illustrate a retail environment where digital tools are no longer optional add-ons but essential components of day-to-day operations and customer service.
Despite the positive momentum, the survey highlights persistent challenges in omnichannel execution. A little over half of retailers (51 percent) identify balancing online and offline operations as a key difficulty, underscoring the complexities of coordinating inventory, pricing, promotions, and customer service across channels. Additional challenges cited include logistics issues and rising operational costs, both of which can erode margins if not managed with integrated systems and strategies. Customer friction points—such as high shipping fees online and the realities of limited staff or long checkout lines in-store—also emerge as important considerations for retailers seeking to optimize the overall customer journey.
Looking ahead, the survey points to a strong appetite for artificial intelligence and machine learning investments. Nearly 60 percent of retailers plan to invest in AI/ML to boost competitiveness, focusing on channel integration, expanded payment options, and hyper-personalized experiences. The data indicate that a significant share of retailers view AI as a fundamental driver of future success, with nearly half believing that AI will fundamentally reshape the future of online retail. This forward-looking sentiment aligns with broader industry patterns where AI-enabled personalization, predictive analytics, and intelligent automation are increasingly recognized as critical capabilities for sustaining growth in a competitive marketplace.
Finally, the survey situates Zoho Commerce’s ongoing product development within the broader retail evolution. In recent times, Zoho Commerce launched a new version of its e-commerce platform, featuring a redesigned interface and enhanced capabilities explicitly designed to support evolving retail needs. This product update underscores a commitment to equipping retailers with tools that facilitate seamless omnichannel operations, streamlined customer journeys, and scalable growth.
In summary, the UAE Retailer Survey offers a detailed snapshot of a market in rapid transition. The data reveal a strong move toward omnichannel experiences, driven by a combination of robust consumer demand, strategic experimentation with store formats, and accelerating technology adoption. The implications for retailers are clear: those who invest in integrated channels, speed, personalization, and AI-enabled capabilities are well-positioned to capture growth as the UAE retail landscape continues to mature.
The shift toward omnichannel retail in the UAE
The UAE’s retail sector is undergoing a pronounced move toward omnichannel strategies, with retailers actively shaping a unified commerce model that bridges the physical and digital realms. The survey underscores a trend where retailers recognize that modern consumers expect seamless experiences that flow effortlessly across channels. This means a customer might research a product online, see availability in a nearby store, test the item in person, and complete the purchase through a preferred channel—whether that’s a mobile wallet in-store, a desktop checkout, or a social commerce path. The result is a sales environment where channel boundaries blur and customer data converges to inform personalized interactions.
A central element of this shift is the adoption of digital tools within physical stores. The fact that seven in ten UAE retailers are now integrating digital capabilities into their brick-and-mortar operations signals a strategic pivot from viewing stores as standalone touchpoints to seeing them as integral components of an omnichannel ecosystem. By embedding technology inside stores, retailers can enrich the customer journey with real-time inventory visibility, interactive product discovery, and streamlined payment options, all while maintaining a consistent brand experience across channels. This holistic approach helps retailers better manage cross-channel promotions, pricing parity, and synchronized loyalty programs, ensuring that customers receive coherent and valuable experiences regardless of how they choose to shop.
Unified experiences are also driven by the recognition that a modern consumer purchases through multiple touchpoints. The survey’s finding that 57 percent of retailers operate both physical and digital storefronts demonstrates that many brands are pursuing a dual presence to maximize reach and convenience. The near equivalence of revenue across channels for the majority of respondents reinforces the imperative to optimize both online and offline experiences rather than prioritizing one at the expense of the other. This dual-channel model requires robust integration of inventory management, customer data platforms, and order fulfillment processes to avoid friction and to deliver consistent service standards.
Another facet of the omnichannel shift is the increased importance of experiential value in physical spaces. Even as e-commerce remains strong, retailers are investing in physical formats such as pop-up stores and in-store partnerships to expand market reach while delivering tangible experiences that online channels cannot fully replicate. Pop-ups offer opportunities to test new markets, showcase exclusive products, and create immersive brand moments that can drive social sharing and word-of-mouth promotion. In-store partnerships can extend capabilities—such as showroom experiences, collaborative events, or cross-brand demonstrations—that attract new customers and foster deeper engagement with the brand.
From a discovery perspective, the omnichannel shift is shaping how customers first encounter products. Social media has emerged as the leading discovery channel, with a significant majority of retailers reporting that customers initially find products on social platforms. This accentuates the role of social strategies, influencer collaborations, and user-generated content in building initial awareness and driving traffic to both online stores and physical locations. The prominence of social discovery reinforces the importance of crafting compelling, platform-appropriate content, maintaining active engagement with communities, and deploying targeted social commerce tactics to convert interest into purchase.
The speed and convenience expectations of consumers further reinforce the need for omnichannel capabilities. Demand for faster delivery and same-day service highlights the pressure on retailers to optimize logistics and optimize the end-to-end customer journey. In response, retailers are aligning fulfillment strategies with channel strategies to ensure that customers experience rapid, reliable service whether they shop online or in-store. This alignment requires synchronized inventory visibility, flexible fulfillment options, and the deployment of technologies such as digital signage, mobile payment acceptance, and in-store processing that accelerates transaction times and reduces friction.
In-store technology plays a crucial role in enabling omnichannel excellence. The adoption of mobile payments indicates a broad consumer comfort with digital wallets and contactless transactions. The deployment of digital screens and tablets enhances product discovery, offers dynamic content, and supports informed purchasing decisions on the floor. Retailers report substantial improvements in speed and convenience thanks to these tools, reinforcing the business case for investing in store-level technology as a catalyst for omnichannel success rather than a secondary enhancement.
However, realizing omnichannel potential is not without challenges. The survey highlights ongoing difficulties in balancing online and offline operations, which require careful synchronization of inventory, pricing, promotions, and customer service standards. Logistics complexities add another layer of complexity, particularly in managing cross-channel fulfillment and returns. Rising operating costs further complicate the landscape, demanding more efficient processes and smarter capital allocation. To navigate these hurdles, retailers must pursue integrated technology platforms, standardized processes, and data-driven decision-making that align every channel around a single, end-to-end customer journey.
Looking forward, the trajectory toward omnichannel in the UAE appears firmly anchored in strategic technology investments. The survey indicates that nearly 60 percent of retailers intend to allocate resources to AI and machine learning initiatives, signaling a belief that advanced analytics and automation will drive channel integration and enhance personalization. The focus areas include expanding payment options to remove friction, integrating channels to present a unified shopping experience, and delivering hyper-personalized experiences that anticipate customer needs and preferences. As the functional capabilities of AI expand, retailers anticipate substantial shifts in how they segment audiences, optimize pricing, manage inventory, and tailor marketing messages.
The emphasis on AI’s transformative potential is underscored by the view that AI could fundamentally reshape the online retail landscape. While this is a forward-looking assertion, it aligns with broader industry expectations about AI’s role in improving product recommendations, search accuracy, customer support through chat-based assistants, and demand forecasting. The UAE’s retail ecosystem appears prepared to explore these opportunities as part of a broader strategy to differentiate through superior customer experiences, efficient operations, and smarter decision-making.
In tandem with these strategic shifts, Zoho Commerce’s latest platform update demonstrates how technology providers are responding to evolving retail needs. The newly launched version of Zoho Commerce features a redesigned interface and enhanced capabilities aimed at supporting the kind of omnichannel operations described by retailers in the survey. This product evolution reflects market demand for tools that simplify integration across channels, improve usability for both merchants and customers, and enable retailers to scale their omnichannel initiatives more effectively. By aligning product development with the practical requirements of UAE retailers, Zoho helps ensure that retailers can implement the most impactful features with minimal friction, from streamlined product discovery to unified checkout experiences and consolidated reporting.
In essence, the shift toward omnichannel retail in the UAE is characterized by deliberate investments in digital tools, an emphasis on unified customer experiences, and a willingness to innovate with new store formats and partnerships. The data point to a market that values speed, personalization, and seamless transitions between channels, underpinned by a willingness to embrace AI and data-driven decision-making. Retailers who operationalize these capabilities across online and physical stores are likely to realize improved engagement, higher conversion rates, and more resilient performance in a dynamic retail environment.
Key drivers transforming UAE retail
At the heart of the UAE’s retail transformation are several interrelated drivers that push retailers to rethink traditional models and adopt more sophisticated, customer-centric approaches. The survey identifies expanding market access as a primary factor, enabling retailers to reach broader audiences beyond conventional storefronts. By leveraging digital channels, brands can tap into new regions, demographics, and customer segments while maintaining a presence in physical locations that support experiential engagement and instant fulfillment. This expanded reach is particularly valuable in a market characterized by high consumer mobility, global tourism, and a diverse population with varied shopping preferences.
Evolving consumer behavior is another major force shaping the transformation. Modern shoppers in the UAE demonstrate greater expectations for flexibility, speed, convenience, and personalization. They are more likely to compare products, read reviews, and seek a seamless shopping experience that spans devices and channels. To meet these evolving preferences, retailers are investing in tools that help them understand and anticipate customer needs, tailor recommendations, and optimize the timing and content of marketing messages. The result is a more responsive, data-driven approach to merchandising, pricing, and customer service.
Personalized experiences emerge as a central strategic objective underpinning the omnichannel strategy. The survey indicates that retailers view hyper-personalization as a differentiator capable of deepening customer loyalty and increasing basket size. Achieving this level of personalization requires integrated data across channels, sophisticated analytics, and automation that can deliver tailored interactions at scale. Retailers are experimenting with cross-channel loyalty programs, targeted promotions, and personalized product suggestions, all designed to enhance engagement and conversion rates.
Another driver highlighted by respondents is the need for expanded market access through multi-channel discovery and purchase options. By offering a range of touchpoints—physical stores, online marketplaces, social commerce, and mobile apps—retailers can accommodate diverse shopping behaviors and create flexible fulfillment paths. The study notes that despite strong e-commerce growth, there remains significant value in physical stores as experiential hubs and as convenient pickup or return points that reinforce the omnichannel experience.
The rise of social media as a primary discovery channel is closely tied to these drivers. With 69 percent of retailers reporting that customers first find products on social platforms, brands are increasingly prioritizing social content, influencer collaborations, and social shopping capabilities. This shift amplifies the importance of social media marketing, content optimization, and community building as core components of a comprehensive growth strategy. The social-first discovery pattern also influences how retailers allocate marketing budgets, measure attribution, and optimize social funnels for conversion.
As consumer expectations for speed and convenience intensify, retailers are compelled to rethink logistics and delivery models. The demand for faster delivery and same-day service underscores the need for streamlined operations and robust last-mile capabilities. Retailers are reimagining inventory management, order routing, and carrier partnerships to ensure rapid fulfillment while maintaining cost efficiency. This emphasis on speed integrates with the broader omnichannel strategy by enabling timely in-store pickups, online orders fulfilled from store inventories, and efficient returns processing across channels.
In-store technology adoption is another critical catalyst for transformation. The prevalence of mobile payments, digital displays, and tablets on the shop floor demonstrates a commitment to modernizing the retail experience. These tools support faster checkouts, better product information delivery, and more engaging customer interactions. Retailers report that in-store technology improves speed and convenience for customers, reinforcing the case for continued investment in digital infrastructure within physical spaces.
Challenges, however, remain a reality for retailers pursuing omnichannel excellence. Balancing online and offline operations presents a substantial hurdle, requiring integrated systems, synchronized pricing, and consistent service levels across channels. Logistics complexities, including inventory visibility and cross-channel fulfillment, add layers of operational risk that must be managed through data-driven processes and robust technology platforms. Rising operational costs compound these pressures, prompting retailers to seek efficiency gains through automation and smarter resource allocation.
Customer friction points continue to influence the design of omnichannel experiences. High shipping fees online can deter online purchases, while in-store staffing shortages and long checkout lines can erode the in-store experience. These pain points necessitate careful operational planning, optimized staffing, transparent shipping policies, and friction-reducing technologies to keep customers engaged and satisfied across channels.
Looking forward, the investment in AI and machine learning is a defining trend. Nearly 60 percent of retailers plan to deploy AI/ML solutions to strengthen channel integration, expand payment options, and deliver hyper-personalized experiences. This future-oriented mindset reflects confidence in AI’s ability to streamline operations, enhance decision-making, and elevate the customer journey. The belief that AI could fundamentally reshape online retail underscores the potential for transformational change in how retailers manage data, personalize engagement, and optimize pricing and promotions.
Zoho Commerce’s platform updates align with these ambitions. The launch of a redesigned e-commerce platform with enhanced features demonstrates a direct response to evolving retail needs, offering tools to support more effective omnichannel operations, improved product discovery, and streamlined checkout experiences. By delivering an interface that is easier to navigate and a feature set tailored to modern retail demands, Zoho aims to empower retailers to implement integrated strategies more efficiently and scale their omnichannel capabilities over time.
In sum, the UAE’s retail transformation is driven by a combination of expanded market reach, shifting consumer expectations, and a strong emphasis on personalization and speed. The evidence from the survey suggests that the market is moving decisively toward integrated, customer-centric models supported by digital tools and AI-powered capabilities. Retailers who embrace these trends with a thoughtful mix of technology, formats, and partnerships are best positioned to grow and differentiate themselves in a competitive landscape.
Channel performance and consumer discovery channels
A critical element of the UAE retail evolution is how channels contribute to discovery, engagement, and sales. The survey highlights social media as the leading discovery channel, illustrating a seismic shift in how customers first encounter products. With 69 percent of respondents reporting that customers discover products on social platforms, retailers are prioritizing social content, influencer partnerships, and social commerce integrations to capture attention and drive traffic. This trend is reshaping marketing strategies, compelling brands to invest in platform-specific content, audience segmentation, and performance metrics that capture the impact of social activities on conversion paths.
The prominence of social discovery also has implications for search and marketplaces. While search engines and marketplaces remain important components of the e-commerce ecosystem, their role as discovery gateways appears to have diminished relative to social channels in the UAE market. Retailers must now balance investments across multiple discovery pathways, ensuring that paid and organic social efforts synergize with search initiatives. This requires a holistic approach to channel attribution, where the contribution of social touchpoints to eventual sales is quantified alongside other channels.
In parallel with discovery dynamics, the survey underscores the continued importance of e-commerce growth, even as physical retail remains robust. The data point that many retailers intend to broaden their physical footprint suggests a belief that experiential retail and in-person engagement still drive brand affinity and conversion. The combination of online expansion and physical presence reflects a strategic view that omnichannel success hinges on a cohesive, cross-channel experience rather than a narrow emphasis on one channel over another.
When it comes to customer expectations for speed, convenience, and service, retailers are aligning their channel strategies with delivery capabilities and in-store processes. Faster delivery and same-day service expectations are pushing retailers to optimize inventory across channels, shorten fulfillment cycles, and streamline last-mile logistics. The integration of in-store technology with online fulfillment can enhance speed and reliability, creating a more consistent customer experience across all touchpoints.
The role of in-store technology in shaping channel performance cannot be overstated. Mobile payments, digital displays, and in-store tablets collectively contribute to faster transactions and more informative shopping experiences. The survey’s findings that in-store tech improves speed and convenience reinforce the business case for investing in these tools. As retailers seek to maximize the impact of digital investments, the ability to connect in-store interactions with digital channels becomes a foundational capability for omnichannel success.
The challenge of balancing online and offline operations remains a central constraint on channel performance. Retailers must manage inventory visibility, pricing parity, and cross-channel promotions to deliver a seamless experience. Logistics and cost concerns further constrain performance, requiring a strategic approach to supply chain design, vendor partnerships, and technology integration. The most successful retailers will be those who implement unified platforms that harmonize orders, inventory, and customer data across channels, enabling smoother operations and better customer outcomes.
Among customer experience considerations, high online shipping fees and in-store bottlenecks remain friction points that retailers must address. Reducing these barriers is essential to sustaining momentum in an omnichannel environment. Solutions may include more transparent pricing, optimized shipping options, efficient checkout flows, and staff training to handle peak demand periods. By mitigating friction, retailers can preserve customer satisfaction and support longer-term loyalty as the omnichannel journey grows more complex.
Future-facing investments in AI and machine learning promise to transform channel performance. With almost two-thirds of retailers signaling intent to deploy AI/ML tools, expectations are high that these technologies will enhance cross-channel coordination, enrich payment experiences, and deliver more personalized shopping journeys. The anticipated reshaping of online retail by AI suggests a strategic pivot toward data-driven decision-making, automated merchandising, and enhanced customer support across all channels.
Zoho Commerce’s product update aligns with these channel-oriented priorities by offering a platform designed to simplify omnichannel integration, improve product discovery, and streamline checkout across touchpoints. The redesigned interface and enhanced features are positioned to help retailers execute more effective cross-channel strategies, accelerate time-to-value, and scale operations as the UAE market continues to mature. The combination of a robust platform and a forward-looking retailer base points to a strong alignment between technology providers and market needs in the UAE.
Concluding this section, channel performance in the UAE is characterized by a strong tilt toward social discovery, the continued relevance of e-commerce growth, and a clear emphasis on delivering speed, convenience, and cohesive experiences across channels. Retailers recognize that omnichannel success depends on a well-orchestrated mix of online and offline capabilities, supported by in-store technology, efficient logistics, and AI-enhanced decision-making. The strategic focus on unified customer journeys, data-driven optimization, and adaptable formats will continue to define the competitive landscape as the market evolves.
In-store technology adoption and customer experience
The adoption of in-store technology stands as a cornerstone of the UAE’s omnichannel journey, reshaping how customers interact with products and complete purchases within physical spaces. The survey reveals a broad-based embrace of digital tools in stores, including mobile payments and digital screens or tablets, which are being deployed to facilitate product discovery, reinforce brand messaging, and streamline the buying process. The presence of mobile payment options is particularly notable, signaling customer comfort with contactless and digital wallet-based transactions. This shift reduces friction at the point of sale and can speed up checkout times, contributing to a smoother customer experience.
Digital signage and tablets on the shop floor add dynamic capabilities to the in-store experience. Retailers report that these technologies aid product discovery, deliver contextual information, and support interactive demonstrations that can help customers understand features, pricing, and compatibility. The ability to showcase promotions, product comparisons, or size and color variations in real time can improve engagement and influence purchasing decisions. The use of these tools also enables retailers to gather data on customer interactions, enabling more precise merchandising and inventory decisions.
The impact of in-store technology on speed and convenience is a recurring theme in the survey. Nearly 70 percent of retailers indicate that in-store technology improves both speed and convenience for customers. This positive assessment underscores the role of technology as a facilitator of efficient shopping experiences, enabling faster checkouts, quicker information retrieval, and more streamlined assistance from staff. Consumers benefit from reduced wait times and more informed, personalized service, while retailers gain improvements in operational efficiency and revenue opportunities through higher conversion rates.
Mobile payments, digital screens, and tablets also contribute to a more flexible and responsive store environment. For example, tablets can provide staff with quick access to product information, inventory status, and customer profiles, enabling more personalized interactions. Digital screens offer opportunities for experiential marketing, cross-selling, and real-time promotions that can adapt to store traffic, time of day, or inventory availability. The cumulative effect of these tools is a more capable store that can respond to customer needs with greater agility, ultimately supporting a more positive shopping experience.
The broader implications of in-store technology extend beyond the immediate transaction. By collecting data on customer behavior, retailers can generate insights into product interest, dwell times, and impulse purchases. This information informs merchandising decisions, helps optimize store layouts, and supports targeted marketing efforts that bridge online and offline channels. In-store tech thus becomes a data collection and analytics asset that strengthens omnichannel strategy by providing a continuous feedback loop across the entire customer journey.
Despite the strong adoption of in-store technology, the survey identifies significant challenges that retailers must navigate to maximize the benefits. Implementing and maintaining digital systems can require substantial upfront and ongoing investments, as well as staff training to ensure effective use. Integrating in-store tech with online platforms and back-end systems can be complex, necessitating careful system design, data synchronization, and security considerations. Retailers must also address potential usability issues, ensuring that the technology enhances rather than complicates the customer experience.
Inventory and fulfillment considerations intersect with in-store technology adoption. Real-time visibility of stock across channels enables more accurate product availability information, faster order routing, and more reliable customer expectations. However, achieving seamless synchronization requires interoperable systems and standardized processes across channels, which can be resource-intensive to implement. Retailers may need to allocate additional resources to IT infrastructure, data governance, and cross-functional collaboration to ensure that in-store technology delivers the intended outcomes.
From a strategic perspective, the integration of in-store technology aligns with the broader aim of delivering a cohesive omnichannel experience. The ability to present a consistent brand narrative, pricing, and promotions across online and offline channels depends on robust digital infrastructure and cross-channel data synchronization. The UAE market’s emphasis on omnichannel excellence suggests a sustained commitment to leveraging in-store technology as a key differentiator, reinforcing customer trust, satisfaction, and loyalty through more intelligent, seamless shopping experiences.
Challenges in omnichannel execution
While the UAE retailers surveyed are actively pursuing omnichannel strategies, the path to seamless cross-channel execution is marked by several persistent challenges. A prominent issue is balancing online and offline operations, which 51 percent of respondents identify as a major hurdle. This balance involves synchronizing pricing, promotions, inventory, and customer service across channels, ensuring that customers receive a consistent experience whether they shop online, in-store, or via a mobile app. Achieving such synchronization requires integrated technology platforms, standardized processes, and strong cross-functional collaboration across the organization.
Logistics issues also feature prominently as a challenge in omnichannel execution. Coordinating inventory availability, order fulfillment, and returns across multiple channels can be complex and costly, particularly when attempting to offer fast or same-day delivery. Retailers must align warehousing, distribution networks, and last-mile carriers to meet customer expectations for speed and reliability while maintaining profitability. The survey’s emphasis on logistics highlights the need for sophisticated supply chain design and real-time visibility to minimize delays and optimize route planning and fulfillment strategies.
Rising operational costs compound the difficulties of omnichannel implementation. As retailers invest in technology, staffing, training, and process improvements, they must manage rising expenses while maintaining competitive price points and acceptable margins. Cost control requires careful budgeting, scalable technology solutions, and efficiency-focused process redesign that reduces waste and improves throughput across channels. Retailers who can accelerate their return on investment for omnichannel initiatives will be better positioned to weather the financial pressures of a rapidly evolving market.
Customer friction points remain a practical hindrance to a smooth omnichannel experience. High shipping fees online deter some customers, while in-store friction—such as limited staff or long checkout lines—can undermine satisfaction and deter repeat purchases. Retailers must address these pain points with clear shipping policies, competitive delivery options, and efficient in-store operations. Proactive staffing models, improved queue management, and enhanced cashier processes can reduce bottlenecks and improve overall customer impressions.
Another critical challenge is data integration and analytics across channels. To deliver personalized experiences and cohesive customer journeys, retailers need a unified view of customer behavior, preferences, and purchase history. This requires data governance, consistent data collection practices, and interoperable systems that can share information between online stores, physical locations, and back-end platforms. In practice, achieving such integration demands significant planning, governance, and ongoing management to ensure data quality and privacy compliance.
Security and privacy considerations add further complexity to omnichannel programs. With more data flowing across channels, retailers must implement robust security measures and comply with applicable data protection regulations. This includes protecting payment data, safeguarding customer profiles, and maintaining secure connections across online and in-store environments. Sound risk management and privacy practices are essential components of any omnichannel strategy to maintain trust and prevent data breaches that could undermine customer confidence.
Retail leadership also faces organizational challenges, including aligning culture, metrics, and incentives with omnichannel goals. A cross-functional approach is required to break down silos and coordinate efforts across marketing, merchandising, operations, IT, and customer service. Leaders must establish shared KPIs, implement governance structures that drive collaboration, and cultivate a culture that values data-driven decision-making and continuous improvement. Without such alignment, even well-designed omnichannel systems can fail to deliver the expected outcomes.
Lastly, the rapid evolution of technology presents a moving target for retailers. New tools, platforms, and standards emerge regularly, requiring ongoing evaluation, upskilling, and strategic prioritization. Retailers must balance experimentation with disciplined execution, focusing on investments that deliver measurable improvements in customer experience and efficiency. A proactive approach to technology refresh cycles, vendor management, and internal capability building will help retailers stay ahead of the curve and sustain momentum in an increasingly competitive landscape.
Future outlook: AI and machine learning investments
The UAE retail landscape is widely seen as embracing the potential of artificial intelligence (AI) and machine learning (ML) to redefine how channels are connected, how payments are processed, and how personalized experiences are delivered. Nearly 60 percent of retailers surveyed express plans to invest in AI and ML to strengthen competitiveness, with focal points including channel integration, expanded payment options, and hyper-personalization. This forward-looking stance indicates confidence that AI technologies can streamline cross-channel operations, improve decision-making, and unlock new avenues for growth.
A key expectation is that AI will enable more seamless channel integration, allowing retailers to coordinate experiences across online stores, mobile apps, and physical locations. AI-driven orchestration can optimize inventory placement, predict demand, and tailor marketing messages to individual customers. This integrated approach can reduce friction for the customer and improve overall operational efficiency, yielding faster fulfillment, more accurate recommendations, and more effective promotions across channels.
Expanded payment options are another area where AI and ML are expected to add value. By supporting a broader array of payment methods and optimizing payment flows, retailers can reduce abandonment and improve checkout experiences. AI can also enhance risk assessment and fraud detection for digital payments, contributing to safer, more reliable transactions across channels. A diversified payment landscape can improve conversion rates and customer satisfaction, particularly for customers who prefer non-traditional or emerging payment methods.
Hyper-personalization stands out as a central objective for many retailers. AI-driven insights into customer behavior, preferences, and purchase history enable highly tailored experiences, from personalized product recommendations to customized marketing outreach. The ability to deliver contextually relevant offers at the right moment—whether online, in-store, or via mobile channels—can significantly boost engagement and conversion. Retailers expect that AI-powered personalization will become a core differentiator as competition intensifies.
The survey also notes that nearly half of respondents believe AI will fundamentally reshape the future of online retail. This reflects a broader industry confidence in AI’s transformative potential. As retailers deploy more sophisticated AI tools, the expectation is that the online shopping experience will become increasingly intuitive, efficient, and responsive to individual needs, ultimately driving stronger loyalty and higher lifetime value.
Zoho Commerce’s ongoing platform enhancements are aligned with this AI-forward vision. The redesigned interface and expanded capabilities are designed to empower retailers to implement AI-enabled features more effectively and to optimize omnichannel workflows. By providing tools that facilitate unified product discovery, streamlined checkout, and comprehensive analytics, Zoho aims to help retailers realize the benefits of AI-powered omnichannel strategies while maintaining simplicity and usability for merchants.
In summary, the future outlook for AI and ML in UAE retail points to deeper channel integration, more flexible and secure payment experiences, and highly personalized customer journeys. Retailers view AI as a strategic enabler of growth, efficiency, and differentiation in a competitive market. The convergence of AI capabilities with omnichannel execution promises to deliver not only incremental gains in performance but also the potential for fundamental shifts in how retailers compete and succeed in the UAE.
Zoho Commerce platform update
In response to evolving retail needs, Zoho Commerce recently rolled out an enhanced version of its e-commerce platform, featuring a redesigned user interface and a suite of advanced features aimed at supporting omnichannel strategies and the digital transformation of UAE retailers. The update emphasizes improved usability, faster workflows, and more powerful tools for managing products, orders, payments, and customer interactions across multiple channels. By focusing on a streamlined interface and practical capabilities, Zoho Commerce seeks to reduce time-to-value for retailers implementing omnichannel initiatives and to enable scalable growth as market demands evolve.
The platform redesign also reinforces the importance of unified data and seamless connectivity across channels. Retailers benefit from more integrated inventory management, unified customer profiles, and centralized analytics, allowing for better decision-making and more consistent customer experiences. Enhanced tools for promotion management, pricing parity, and cross-channel reporting support the goal of delivering a coherent brand experience and measurable performance improvements across both online and offline touchpoints.
The broader implications of Zoho Commerce’s platform update extend to the UAE’s retail ecosystem by providing retailers with a capable, adaptable solution that aligns with market needs. The redesigned interface reduces complexity for merchants, enabling faster onboarding and more efficient daily operations. The enhanced features support a more holistic approach to omnichannel management, empowering retailers to execute cohesive strategies that align product, price, promotion, and placement across channels. As the market continues to evolve, platform improvements like these can accelerate adoption of integrated retail models and help firms achieve sustainable growth.
Conclusion
The UAE’s retail sector is undergoing a meaningful transformation driven by a concerted shift toward omnichannel commerce, supported by digital tools, in-store technology, and a strategic embrace of AI and machine learning. The Zoho survey demonstrates that a majority of retailers now operate across physical and digital storefronts, with many reporting similar revenue from both channels. Social media has emerged as a primary discovery channel, underscoring the importance of social commerce strategies in attracting and engaging customers.
Retailers are responding to evolving consumer expectations for speed, convenience, and personalization by investing in faster delivery, same-day service capabilities, and in-store technology that enhances the shopping experience. Yet challenges persist in balancing online and offline operations, managing logistics, controlling costs, and addressing customer friction points such as shipping fees and checkout bottlenecks. The path forward involves continued investment in AI/ML to enable cross-channel integration, broaden payment options, and deliver hyper-personalized experiences that deepen engagement and loyalty.
Zoho Commerce’s platform updates illustrate how technology providers are adapting to these trends by offering tools designed to support omnichannel workflows, simplify product discovery, and streamline checkout processes. By providing a cohesive, user-friendly platform, Zoho supports retailers as they navigate the complexities of omnichannel execution while leveraging AI-driven insights to optimize operations and customer experiences.
Taken together, the insights from the UAE Retailer Survey point to a market that is actively embracing a more integrated, intelligent, and customer-centric approach to retail. The emphasis on unified experiences, rapid fulfillment, personalization, and data-driven decision-making suggests a future in which omnichannel strategies become the norm rather than the exception. For UAE retailers, sustained success will hinge on their ability to integrate channels effectively, invest in scalable technology, and stay responsive to the evolving preferences of a dynamic, digitally empowered customer base. The ongoing evolution of Zoho Commerce and similar platforms will likely play a pivotal role in enabling this transformation, helping retailers realize the full potential of omnichannel commerce in the UAE.