It’s been for quite some years we hear that offline retail would face its’ final demise.
Online shopping will completely transform the customer journey with all shopping desires with just one finger click away.
Flash forward to 2025 and the reality is a stark reminder that offline retail didn’t just phase out; it never disappeared…Ecommerce keeps on pacing & diversifying. It will continue to evolve thanks to our digital savvy consumer who is eager to learn, discover and buy more online…
By value, online retail now accounts for an estimated 15–16% of total retail in the UAE, the highest e-commerce share of any country in MENA, (eCommerce Market Update July 26th 2024). This is a remarkable figure that reflects just how digitally savvy UAE shoppers have become – and how quickly retailers have adapted. Yet, The Middle Eastern region is characterized by a mall culture that is lifestyle bound, geared to thrive and expand in size and scale.
So, how do Offline and Online retail stack up? Contrary to what was believed earlier, offline and online retail are not to compete, yet to complement each other.
Retailers are to offer a fully integrated ecosystem, whilst creating sensory experiences offline and retail innovation online. As there is no more distinction for consumers between online and offline shopping, retailers need to create a seamless customer journey; from offline to online and online to offline. This does not only apply in terms of standardized price setting, but also in terms of brand positioning, stock inventory to data capture.
E-commerce natives (like Noon and Amazon) have also jumped on the wagon, whilst experimenting with physical touchpoints and faster fulfilment.
“Phygital” shopping experiences will only accelerate in the near future, fuelled by the latest technologies through AI, AR & VR to enhance the physical in-store experience.
Most retailers will have an e-commerce presence along with a brick-and-mortar operation. Done well, it can be a major source of sales.
