Across the world, consumers are no longer thinking about which channel they are shopping in-store or online. For more and more people, the physical store has become an extension of the digital shopping experience, and shopping is just shopping.
This is one of the prominent trends identified in the extensive 2024 Global Digital Shopping Index series conducted by PYMNTS Intelligence on behalf of Visa Acceptance Solutions.
This trend is emerging around the world due to the rise of Click-and-Mortar™ shoppers – consumers who leverage both digital tools and brick-and-mortar stores to maximize their shopping experience. This is a pattern we’ve seen in Mexico, Europe, the US and other regions, but Click-and-Mortar™ shoppers are particularly prevalent in the UAE, as revealed in the United Arab Emirates (UAE) edition of our Global Shopping Index.
89% of UAE retail shoppers leverage digital tools when shopping in-store, compared to 45% of UAE grocery shoppers. And when surveyed about the quality of digital shopping features, respondents shared the second-highest customer satisfaction among the six countries surveyed, which perhaps explains why 71% of UAE consumers have used digital features to enhance their recent shopping experience.
But there’s still room to grow. We surveyed 1,392 consumers and 212 merchants in the UAE for our research and determined that merchants there would be wise to not rest on their laurels, but rather continue to build on their existing enthusiasm for Click-and-Mortar™ shopping.
In a retail industry increasingly driven by digital innovation, continued development will give the UAE an edge over the rest of the region – after all, it doesn’t take long for once-novel digital capabilities to become outdated in the eyes of consumers, which can lead to stagnation.
Our research shows that digital shopping stagnation is a real risk in the UAE. PYMNTS Intelligence data spans several years, and as the chart below shows, the percentage of Click-and-Mortar™ shoppers has actually decreased since 2021. However, retailers may be contributing to this, as UAE retailers are offering, on average, one less feature than the previous year.
Nonetheless, Click-and-Mortar™’s base is set to recover somewhat from 2022 to 2023, further suggesting that enthusiasm isn’t an issue. Opportunities remain for enterprising UAE merchants to continue to grow their shopper base.
In particular, data shows that the gap between consumer demand for digital capabilities and market supply creates huge growth potential for retailers, especially grocers. By expanding and diversifying their digital offerings rather than becoming complacent and cutting back, retailers can reinvigorate and reap the benefits of consumers’ Click-and-Mortar™ experience.
With consumers already using an average of 14 digital features and 9 in 10 retail shoppers relying on these digital aids, there is a strong demand for enhanced Click-and-Mortar™ experiences in the UAE. To stay competitive, local merchants need to meet current needs and set new benchmarks for digital retail innovation.
