In the United Arab Emirates (UAE), retailers are increasingly denying the distinction between online and in-store shopping, and the country has emerged as one of the world’s most advanced in terms of the “phygital” retail experience.
Consumers in the UAE are among the most willing to embrace hybrid shopping, as PYMNTS research has shown, and 59% of Emirati shoppers have reported using their smartphones to enhance in-store shopping.
Read more: 59% of UAE Shoppers Use Smartphones to Enhance Their In-Store Experience
As recent news demonstrates, brands are cottoning on to the country’s openness to phygital retail and innovating in the space with a range of shopping experiences that integrate digital technology on the shop floor.
At a recent round table discussion, Shireen El Khatib, CEO of one of the country’s largest mall operators Majid Al Futtaim, offered some comments on the future of the industry.
She said that shopping malls are increasingly focused on “augmenting customer experience across the assets, focusing on culture, leisure, entertainment, wellness, beauty, food and beverage,” and added that “all these categories can’t be online. You have to be in a physical space to enjoy them […] for us to be realistic, the future is definitely an integration of both physical and digital.”
But phygital shopping isn’t just about brick-and-mortar stores catering to today’s tech-savvy consumers. In the other direction, eCommerce businesses are also moving into the physical retail space.
For instance, online home and fashion retailer 6thStreet.com, which operates in countries across the Gulf Cooperation Council (GCC) region, recently opened its first physical store in Dubai Hills Mall with a phygital concept designed to combine the best of online and in-store shopping.
Customers at the 6thStreet store can use tablets to browse, pick and add items as if shopping online. Instead of picking clothes off a rack, shoppers simply walk into a fitting room, where their selections are waiting for them to try on. Each room is also equipped with an interactive screen that allows customers to exchange sizes, request assistance and snake their purchases.
Speaking at the launch of the store, Omar bin Sultan Al Olama, UAE Minister of State for artificial intelligence, digital economy and teleworking applications, said the new store is “testament to the UAE’s leadership in future technologies and a reflection of the country’s status as a global shopping and tourism hub.”
He added that 6thStreet is part of a generation of “smart retail brands” helping to drive innovation in the sector and strengthen the country’s digital economy.
Learn more: PYMNTS GCC Series: High Smartphone Penetration, Govt Support Boosts UAE’s FinTech Growth
6thStreet’s CEO and founder Dharmin Ved also acknowledged the UAE government’s support at the launch, saying, “The nurturing ecosystem created by the UAE government allows ambition and innovation to thrive, so it is only fitting that we launched our first phygital store in Dubai.”
To create the new store, 6thStreet tapped the Polish technology company Nanovo, which specializes in creating digitized retail and service spaces.
As a sign that the Gulf nation is increasingly recognized as a key destination for such phygital offerings, Nanovo recently opened a regional office in the country — the GCC’s first phygital store — which, according to the firm’s co-founder Dariusz Sobczak, is an indication of how retail will change in the near future.
Related: How Real-Time Payments Can Unleash Economic Growth in the GCC
“Phygital store it’s the missing piece in a truly omnichannel customer experience. The dynamic nature of the e-commerce and retail industry in the MENA region is what we believe creates great potential for growth,” Sobczak said.
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