Phygital shopping is taking over Dubai but most brands are missing the bigger picture

The line between online and in-store shopping is disappearing.

Dubai’s retail scene is evolving fast, and phygital (physical + digital) shopping is leading the charge.

Customers expect more than just a place to shop—they want a seamless experience. And they’re already adapting:

• 59% of Emirati shoppers use their smartphones to enhance in-store shopping. (FastCompanyME)
• Browse online, pick up in-store.
• Try in-store, get personalized recommendations, buy later online.
• Check product stock in real time before even leaving home.

It’s a whole new world of retail—one that’s exciting but also dangerous if done wrong.

The UX challenge

UX teams now need to design beyond the screen:

• Augmented reality (AR) and virtual reality (VR) experiences → From virtual try-ons to immersive showrooms, how do we make these experiences actually useful instead of just gimmicky?
• Seamless transitions between devices and locations → A user’s journey might start on a phone, continue in-store, and end online. Each step has to feel connected, not disjointed.
• Consistency across touchpoints → Whether a customer is using an app, speaking to a sales associate, or browsing a website, the experience should feel like one ecosystem.

The business play

Phygital isn’t just about making shopping more fun—it’s a serious business tool.

• Inventory management in real time → Digital channels let retailers track stock dynamically and adjust to demand. No more “Sorry, we’re out of stock” when a product is sitting in the back room.
• Smart capacity planning → Real-time data allows stores to react to foot traffic, staffing needs, and purchasing trends instantly.
• Optimized operations → Think predictive restocking, personalized in-store experiences, and logistics that adapt on the fly.

The bottom line

Retailers in Dubai have a massive opportunity to redefine how people shop.

But throwing in tech for the sake of tech won’t cut it.

The best phygital experiences:

• Eliminate friction instead of adding complexity.
• Blend physical and digital seamlessly, without making customers think about it.
• Drive revenue and efficiency—because at the end of the day, CX should be as much about profitability as it is about experience.

This isn’t the future. This is happening now.

Your turn

What’s the biggest UX or business challenge you see with phygital retail?

Sources

Fast Company Middle East. “Retailers in the Middle East want to attract Gen Z this holiday season. Will they succeed?” Fast Company ME, December 2022. Read more.

PYMNTS. “Smart retail brands drive phygital shopping experience in the UAE.” PYMNTS.com, October 2022. Read more.

Austin Contrarian. “Retail innovation in Dubai: Blending technology and customer service.” AustinContrarian.com, November 2022. Read more.