Digital Stagnation Hampers Growth of Merchants in UAE

The United Arab Emirates (UAE) is at the forefront of digital shopping innovation, with 71% of consumers actively using digital features to enhance their shopping experiences. A recent report, the “2024 Global Digital Shopping Index: UAE Edition,” commissioned by Visa Acceptance Solutions and conducted by PYMNTS Intelligence, sheds light on the current trends in consumer behavior and the rise of Click-and-Mortar™ shopping experiences in the UAE.

The report, based on surveys of 1,392 consumers and 212 merchants in the UAE, reveals that the country has the second-highest consumer satisfaction rate among the markets surveyed. This high satisfaction rate is attributed to the extensive integration of digital features into the shopping experience, with nearly three-quarters of shoppers in the UAE embracing online-only or Click-and-Mortar™ methods.

Despite the widespread use of digital features, the report highlights a stagnation in the adoption of Click-and-Mortar™ strategies among UAE consumers. While the number of digital features used by consumers has increased, the variety of offerings from merchants has fallen, indicating a mismatch between supply and demand. This presents an opportunity for retailers to enhance their digital offerings and better cater to the needs of Click-and-Mortar™ shoppers.

Grocery shoppers in the UAE, in particular, have unique digital needs compared to other retail shoppers. The report reveals that less than half of grocery shoppers used digital aids during their last shopping trip, mainly due to insufficient offerings from grocers. To maintain their leading position in customer satisfaction and reach a wider range of consumers, UAE merchants, especially grocers, must innovate and improve their digital shopping experiences.

By focusing on Click-and-Mortar™ experiences that are popular among active users, such as family-friendly pickup options and engaging online experiences, merchants in the UAE can enhance the overall customer experience. This targeted approach to digital innovation can help retailers stay ahead in a competitive market and meet the evolving needs of tech-savvy consumers.

Overall, the “2024 Global Digital Shopping Index: UAE Edition” highlights the importance of ongoing development and innovation in the digital shopping landscape. With the right strategies in place, UAE merchants can continue to lead the way in customer satisfaction and set new benchmarks for digital retail innovation.