The UAE is not only home to the world’s largest shopping mall and a hub for international brands, but it is also the country where customers report the highest levels of shopping satisfaction, ranking second globally, according to a recent report.
This comes as more shoppers frequently become custom to using digital features to enhance their shopping experience, including in-store, across the Emirates.
The report, which surveyed nearly 14,000 consumers and 3,512 merchants across seven countries, found that 71 percent of UAE shoppers utilise on average 14 different digital features, which is more than the global average. These tools, known as “Click-and-Mortar”, involves both digital features and physical locations that replace the siloed world of online-only or in-store-only shopping.
“Digital features can simplify shopping, and our data finds a correlation between more features used with higher satisfaction,” explained Salima Gutieva, Vice President and Country Manager for the UAE, Visa.
“For instance, Click-and-Mortar shoppers in the UAE have an average 56 percent increase in satisfaction relative to in-store-only shoppers who avoid digital features,” Gutieva added.
Gutieva emphasises that in the current retail landscape, digital innovation is playing an increasingly important role. Merchants tailoring their digital offerings to their diverse consumer base will be critical to meet the UAE’s demand for a high-quality, feature-led shopping experience.
Currently, 9 out of 10 retail shoppers rely on digital aids when shopping in-store. These aids have resulted in a higher in-store shopping experience, topping other “Click-and-Morter” shopper satisfaction rates in some other markets, according to the report.
Yet, despite the high dependence on digital aids, the report found that UAE merchants currently offer fewer features on average than they did in the past year – highlighting an opportunity for UAE retailers to seize the growing demand for “Click-and-Mortar” offerings.
According to the report, over 20 percent of UAE merchants do not provide the features consumers desire. Consumers also cannot find 22 percent of the provided features.
“This presents an opportunity for Visa to partner with UAE merchants to build on this lead by layering digital features atop an already first-rate in-store experience and to ensure customer satisfaction and loyalty,” Gutieva added.
Some of the most popular “Click-and-Mortar” features that Visa identified among UAE retail shoppers include:
- Ability to use preferred payment method
- Easy-to-navigate online store
- Digitally available product detail
- Digitally available product reviews
Millennials, Gen Z shift shopping in UAE
Millennial and Generation Z consumers are the leading age cohorts driving the shift to Click-and-Mortar strategies in the UAE, with roughly 80 percent of millennial and Gen Z consumers incorporating digital features into their purchasing behavior.
Click-and-Mortar behavior is most pronounced among bridge millennials, more than half of whom seek these experiences. By contrast, 41 percent of Generation X and 87 percent of baby boomers and seniors prefer traditional shopping—in-store with no digital assistance.
The report suggests further innovation in providing these features would help merchants reach a greater diversity of customers. Tailoring digital offerings to these demographics, prioritising features such as family-friendly pickup options, and creating engaging online experiences will be key to meeting the specific needs of UAE shopper satisfaction going forward.
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