More retailers in the UAE are integrating digital tools into their physical stores, signalling a rapid move toward omnichannel retail, according to new research from Zoho Commerce.

The UAE Retailer Survey, based on responses from more than 300 businesses, found that 57 per cent operate both physical and digital storefronts, with nearly seven in 10 of these generating equal revenue from each channel.

Social media has overtaken search engines and marketplaces as the top discovery channel, with 69 per cent of retailers saying it is where customers first encounter their products.

Despite e-commerce growth, half of the surveyed retailers still plan to expand their physical footprint, often through pop-ups and in-store partnerships aimed at delivering experiential value and instant gratification.

Consumer expectations for speed are also rising, with 54 per cent reported demand for faster delivery and 49 per cent for same-day service.

Meanwhile, in-store technology adoption is growing, with 64 per cent of retailers offering mobile payments and more than 60 per cent using digital screens or tablets for product discovery. Nearly 70 per cent believe these tools improve speed and convenience.

However, challenges remain. About 50 per cent of retailers struggle to balance online and offline operations, while high shipping fees, staffing shortages and long checkout lines remain key pain points.

“The retail sector in the UAE is taking a more holistic and intelligent approach to commerce,” said Prashant Ganti, VP, global product strategy, finance and operations at Zoho.

“Retailers are building unified experiences across online and offline channels. Businesses that invest in the right tools, including AI, will lead the next wave of growth.”