Physical stores are here to stay

Despite the growing convenience of e-commerce platforms, stores remain critical in influencing buying decisions

As the retail landscape across the GCC transforms, physical stores are proving they are not just surviving, but thriving. Despite the growth of e-commerce, traditional retail is being reinvented through innovation, technology and customer-centric design.

A recent PwC survey found that 46% of consumers value the ability to see and touch products before buying, while 40% enjoy the instant gratification of in-store purchasing.

Surprisingly, even among Gen Z – a generation known for its digital fluency – there remains strong engagement with physical retail, with 60% of these shoppers visiting stores for product discovery, and 56% completing purchases in-store.

Retail spaces are rapidly evolving to keep pace with shifting expectations. No longer just commercial centres, malls are being transformed into integrated lifestyle destinations – blending shopping with entertainment, dining and cultural attractions.

These enhancements are driving footfall, prompting shoppers to stay longer.

In the region, Dubai Mall is a leading example of this shift. The destination welcomed a record 111 million visitors in 2024, surpassing its previous high of 105 million in 2023. In response to this demand, Emaar Properties announced a further expansion of the mall to include 240 new luxury stores and food and beverage outlets, with an investment of AED1.5bn ($408.4m).

This evolution supports the broader trend of omnichannel retailing, where physical retail, e-commerce, and digital technologies converge to deliver a seamless, personalised shopping experience.