These are the biggest ideas in retail in the Middle East

We asked the industry leaders and experts about the future of retail and the trends driving it.

Today, retailers can’t think of digital and physical consumer interactions as separate. In fact, those who fail to integrate data in their omnichannel strategy struggle to bridge the physical-digital divide. They risk falling behind competitors who understand that the modern consumer shops fluidly between channels, devices, and payment experiences.

The Middle East’s retail industry is shaped by advanced technologies and evolving consumer expectations. Omnichannel retailing, data-driven approaches, and a focus on transparency and sustainability drive the industry.

Retailers are also adapting to meet the expectations of tech-savvy consumers who demand convenience, personalization, and seamless experiences across all shopping channels.

We asked the industry leaders and experts about the future of retail and the trends driving it. All agreed that it is technologically advanced, culturally aware, and sustainability-focused. 

Asif Sabir, Chief Technology Officer, GoBazaar

Retailers leverage AI to analyze customer data and provide highly personalized shopping experiences. This includes personalized recommendations, tailored marketing messages, and even customized products. Omnichannel integration—customers expect a seamless shopping experience across all online, in-store, and mobile channels. Retailers focus on integrating these channels to provide a consistent and connected experience. Click-and-Collect/Buy Online, Pick-Up In-Store (BOPIS) –the integration of online and offline channels is becoming increasingly popular, allowing customers to order online and purchase in-store.

IoT devices and automation in retail stores are on the rise. From smart shelves that monitor inventory to checkout-free stores, technology is transforming the in-store experience. Social commerce is expanding as platforms like Instagram, TikTok, and Facebook integrate shopping features directly into their apps. Influencers and user-generated content are driving sales through these platforms.

Live streaming shopping events and shoppable videos are popular ways to engage customers and drive sales, mainly among younger consumers. Meanwhile, retailers are increasingly tailoring their product offerings and marketing strategies to specific local markets. This includes offering locally sourced products or customizing store layouts and promotions to reflect local preferences. Technology, sustainability, and personalization have a major impact on retail.

Erdem Inan, CEO, Trendyol Group

The future of retail is shaped by technology, evolving consumer behaviors, and the demand for seamless shopping experiences. At Trendyol, we’ve created a marketplace that offers a wide array of affordable and popular products while empowering sellers and customers with advanced tools and data-driven insights. We believe having an extensive local selection and the right mix of globally sourced products is the right way to meet customer needs. We’re leveraging data to personalize shopping experiences and deliver the products our customers want when they want them. As the retail landscape continues to evolve, we’re confident that those who offer a diverse selection, personalized experiences, and frictionless shopping will lead the way.

Fadi Abu Shamat, Senior Director and Head of Mobile eXperience Division, Samsung Gulf Electronics 

The retail landscape in the GCC is evolving with the rise of experiences that blend physical and digital elements. This trend caters to the modern consumer’s desire for unique, experiential shopping beyond traditional brick-and-mortar or pure e-commerce models. Pop-up stores in shopping centers are a great example of this. Popular at product launches and key shopping seasons like Ramadan, they offer brands a flexible way to experiment with new concepts and engage customers in novel ways. Retailers in the GCC are increasingly adopting sophisticated omnichannel strategies to provide a cohesive shopping experience across all touchpoints. This approach recognizes the non-linear nature of modern shopping journeys. Consumers often begin their product research online, visit a physical store for a hands-on experience, and then complete their purchase online or through a mobile app. One recent innovation in this space is the implementation of Endless Aisle, a revolution in e-commerce retail. 

This innovative solution seamlessly integrates the e-commerce platform with an in-store POS system, allowing you to offer online-exclusive products, like unique colors or sizes, directly within your physical store. Currently, we’re testing this integration with our Samsung.com POS system in our partner retail environment. Retailers are responding to these changing dynamics by ensuring consistent pricing and promotions, integrating inventory systems for services like buying online and picking up in-store, and unifying customer data across channels for personalized marketing and service. The ultimate goal is to create a seamless experience that allows customers to move effortlessly between online and offline channels throughout their shopping journey.

Personalization in e-commerce is driving growth in the GCC. Retailers create personalized shopping experiences using AI and machine learning algorithms to capitalize on this trend. 

Frederic Levy-Perrault, Chief Executive Officer, Al Raya Group

Future trends in grocery retail will be related to the ubiquity of technology within businesses and in the hands of consumers. The first most visible trend will be omnichannel retailing, allowing a seamless experience across online and brick-and-mortar channels. The second trend will be using AI and machine learning for a more data-driven approach to better understand consumers, personalize the shopping experience, optimize stocks, and/or coordinate with suppliers. The third trend will be related to the prominence of retail media as a new channel for suppliers to communicate with consumers through retailers. Consumers are becoming more demanding of information about the products they purchase. They are increasingly interested in knowing products’ and retailers’ origin, content, and sustainability practices. Blockchain technology can provide the necessary traceability to ensure transparency and build consumer trust.

Joe Abi Akl, Partner and Head of the Retail and Consumer Practice, Oliver Wyman, India, Middle East and Africa 

The future of the retail industry hinges on finding the right balance between innovation, personalization, and sustainability in a rapidly changing landscape. As trends such as omnichannel shopping and AI revolutionize the sector, retailers must be agile in meeting the increasingly sophisticated demands of consumers. By harnessing technology, cultivating strong customer connections, and prioritizing environmental stewardship, businesses can unlock fresh possibilities while navigating the convergence of retail, entertainment, hospitality, and banking. Embracing bold transformations and making strategic reinvestments will ensure survival and drive success in this dynamic environment.

Kabir Lumba, CEO, Landmark Retail 

With evolving customer preferences, the need for omnichannel retail is more crucial than ever. We understand the importance of engaging with customers where they are, making it essential to deliver seamless experiences and enhance the customer journey across both brick-and-mortar and online platforms. We continue to invest in our physical stores, which serve as critical touchpoints, allowing customers to interact with brands, experience products firsthand, and build lasting trust. As our e-commerce platforms expand rapidly, they offer a unique opportunity to blend digital innovations with physical retail environments. We constantly strive to balance these channels, harmonizing tradition and innovation.

Karim Abd El Kader, Co-Founder & Chief Commercial Officer, The Fashion Kingdom 

AI implementation helps brands and retailers automate their business operations, leading to increased sales and profits and optimized and streamlined business processes. For example, brands and retailers can use AI to forecast demand based on customers’ spending trends for all or specific SKUs, which helps in planning inventory reductions and increases according to changes in demand forecasting. In doing so, we reduce excessive stock and ensure timely replenishment. Open-source predictive AI models are available and accessible to all retailers and brands. Another use-case of AI by retailers and brands is the usage of Generative AI as chatbots to automate customer service functions at scale, which decreases the overheads of the customer service team and makes the organization much leaner. 

Retailers and brands use AI to personalize messages and offers. The future of retail will be about personalizing and generating unique messages and offers to customers individually. AI in personalization uses historical, current, and predicted customer behavior to provide better and more relevant offers and messaging in the form of recommended items, upselling, and smart bundling. Personalization can have a big positive impact on retailers and brands by increasing their conversion rate and average order value, which impacts their profitability and efficiency. 

Additionally, loyalty programs are very effective in increasing customer retention and lifetime value, enhancing the business’s unit economics as the customer acquisition cost to lifetime value ratio. 

Kunal Kapoor, Founder and CEO, The Luxury Closet 

The future of retail is being shaped by sustainability. As consumer awareness increases, the demand for ethical and environmentally friendly practices becomes a major driving force in the industry. Sustainability is no longer just an option but a necessity for retailers to remain relevant. Resale models, waste reduction, and responsible sourcing meet the growing consumer demand for transparency and ethical standards. These initiatives align with evolving consumer values and offer brands a chance to stand out in a competitive market. By addressing these challenges proactively, retailers can build trust, foster customer loyalty, and achieve sustained success in an ever-changing retail landscape.

Dr. Martyn Davies, Vice President & Head of City Excellence, Royal Commission for Riyadh City

The rapid ongoing structural reform and liberalization of the Saudi Arabian Economy are creating a tailwind for consumer spending. This is particularly evident in Riyadh, which has a strong retail development pipeline that attracts some of the world’s leading brands. With significant business travelers and tourists entering the country and new intra-city destinations and mall infrastructure coming through the development pipeline, Riyadh is emerging as a new destination for luxury retail. Riyadh is offering an increasingly attractive investment destination for a luxury industry that is currently seeking new markets and new drivers of consumer growth for the industry.

Matteo Gamboni, CEO, Mimanera 

We’ve been personalizing sneakers since I first started the company in my grandma’s garage 15 years ago. Back then, I saw a shift happening—people didn’t want products that looked like everyone else’s. They wanted something unique, something that told their story. Today, that trend has only grown stronger. Customization is no longer a niche but a driving force in retail. When you offer a product tailored to a customer’s personality, you create a connection far beyond a simple transaction. It’s this bond that will continue to shape the future of the industry.

Mohammad A. Baker, Deputy Chairman and CEO, GMG

The GCC retail sector uniquely blends physical and digital retail experiences. Unlike Western markets, where online shopping is increasingly dominant, physical stores remain integral to the Gulf’s retail culture. 

Engaging with the future generations. One of the major shifts we have noticed is the rising spending power of younger consumers, adding a new layer to retail dynamics. For retailers to be successful with younger shoppers, they must align with social causes, which includes implementing measures such as greening the supply chain and demanding sustainability credentials from suppliers. 

Enhancing customer experiences is a top priority for Gulf retailers. Gulf retailers strongly emphasize elevating the shopping experience to drive customer loyalty and increase revenue. This includes offering a wide choice of brands, providing personal attention and high-quality customer service, and using technology to create unique and memorable shopping experiences that set them apart from global competitors. The enthusiasm for new technology extends to the retail sector, where AI and advanced analytics are being employed to enhance the customer experience.

AI adoption in the GCC’s retail and consumer packaged goods sector is widespread. AI-driven data analytics delivers unprecedented insights into retail operations, which helps improve sales by understanding consumer behavior, seasonality, competition, pricing, promotional effectiveness, broader economic factors such as employment rates and inflation, and local market conditions, including demographics and weather patterns. There is a conscious effort across the industry to implement sustainability measures into operation, such as using sustainable packaging materials, reducing single-use plastics, adopting energy-efficient technologies, and offering sustainable product lines.

Mrunal Khimji, Founder & Creative Director, Mrunal’s Boutique 

As a fashion entrepreneur, four principles always succeed in working — simple, mindful, adaptable, and environmentally friendly. These principles can change how the retail industry functions. The era of excess is over. Trends should have lasting effects, especially in industries like retail and fashion. Being size-inclusive can be a game-changer. In the retail industry, many brands offer standard sizes, which can keep many potential customers away. Brands should introduce custom sizing to target a more diverse client pool. We have been following this at our boutique and it has been one of our success factors.

Naser Musaed AlSayer, Chairperson, AlSayer Franchising Company 

Transformative ideas include the integration of AI and IoT to offer personalized shopping experiences and real-time inventory management. AI-driven insights enable retailers to tailor their offerings, enhancing customer engagement and satisfaction. IoT devices streamline operations and provide valuable data on consumer behavior, driving efficiency and innovation. The region’s youthful population also influences trends, demanding seamless omnichannel experiences that blend online and offline shopping. Additionally, a growing emphasis on sustainability and ethical practices is reshaping consumer expectations, with brands prioritizing transparency and social responsibility. By embracing these innovations and focusing on customer-centric strategies, retailers can transform their operations and set new standards in the global retail landscape.

Nick Vinckier, Director of Corporate Innovation, Chalhoub Group 

Three trends stand out for their impact: sustainability, phygital, and AI. As consumers become more conscious, there’s a growing demand for sustainability, and brands adopt circular business models. Our Level Shoes launched its pre-loved category and resale service to tap into the growing luxury re-commerce market in the region, expected to reach $780 million by 2026. Phygital experiences are also rising, creating more engaging ways to shop. Chalhoub Group’s web3-native sneaker label, SOL3MATES, is a prime example of this trend, merging the physical and digital worlds to offer unique, immersive customer experiences. Additionally, this trend is changing how we interact with customers, from AR and virtual try-ons to new virtual spaces like Roblox. With $2.8 billion in virtual item sales last year, Roblox is particularly interesting to us. Lastly, AI is another game-changer, from enhancing personalization to optimizing operations to accelerating creativity. 

Paolo Marai, President and CEO, Timex Group Luxury Division 

The luxury retail landscape is being redefined by hyper-personalized, immersive experiences that go beyond transactions, offering bespoke services tailored to individual preferences. In luxury watchmaking, this trend enhances exclusivity through private, curated experiences like custom watch designs and access to limited editions. Technology plays a key role in this evolution, with AI-driven personalization, virtual try-ons, and blockchain ensuring product authenticity and transparency.

For high-net-worth individuals, these personalized touches create emotional connections with the brand, fostering loyalty. Additionally, the trend aligns with growing consumer demand for sustainability and ethical sourcing. By using responsibly sourced materials and transparent production practices, luxury brands meet customer expectations and lead the way in responsible consumption. This blend of exclusivity, personalization, and sustainability enhances the customer experience and brand loyalty.

Parvathy Achyuth, Founder and CEO, Zaecy 

More brands will likely seek control over their manufacturing processes, as managing the value chain is a crucial step toward differentiating themselves from superior products. This control allows for quicker responses to trends and offers a clearer path for brands when they need to pivot—something that will happen frequently with the evolving consumer mindset in this region. Flexibility in this market is vital, and the operational efficiency gained from owning their processes can give brands the freedom to be more creative.

Apart from being able to bring products to market faster and respond more nimbly to consumer demands, direct oversight of manufacturing also means tighter control over intellectual property and a stronger commitment to ethical and sustainable practices, which are increasingly important in today’s market. The future of retail will belong to those who can seamlessly integrate their vision with execution, and owning manufacturing is key to achieving that integration.

Rohan Kapoor, Group Vice President, Digital Marketing & Loyalty, Cenomi Group 

Our focus is on aligning closely with regional consumer behaviors and market dynamics. Key among these is the integration of localized e-commerce solutions that cater specifically to Middle Eastern shopping habits and preferences. We are also prioritizing the enhancement of logistics and supply chain transparency, which are crucial for timely deliveries. Additionally, a significant push towards sustainability is vital—implementing green logistics and reducing packaging waste to meet the environmental expectations of our consumers. By adopting these realistic strategies, including advanced CRM tools for better customer relationship management and personalized marketing, we’re setting a course for a retail environment that’s more responsive and efficient and more attuned to our customers’ ethical and practical needs.  

Dr. Ross Curran, Associate Professor in Marketing at Heriot-Watt University Dubai

Sustainable and ethical behaviors will become further embedded within retail spaces. Increasingly, retailers are making a positive contribution towards more sustainable retail practices, and the retail environment is the logical place to enact these values and involve wider audiences. The retail space is no longer reserved only for buying and selling but should now serve as an environment to promote communication, education, and demonstration of authentic, sustainability-focused values. 

For example, retail spaces can incorporate display stations to communicate their ethical values to consumers and outline the retailer’s ethical and sustainable practices. Consumer trust is a valuable commodity, so it is important to communicate evidence-based information. Technology can be incorporated into these stations to enhance opportunities for consumer interaction with the brand. Academic research shows increasing consumer engagement can promote consumer loyalty and intention to purchase. 

Incorporating in-store recycling and repair services will likely become more commonplace in retail. Not only is this another useful way for brands to demonstrate their commitment to sustainable practices, but it also supports consumers in reconciling their sustainability concerns with a desire to continue engaging in the consumption of new goods. Furthermore, putting the retail brand at the center of the post-consumption process invites regular visits to retail stores and can be invaluable in long-term customer relationship building. Emphasizing sustainability in the value proposition to consumers and embedding it visibly within the retail footprint must be genuine and well-meaning. The modern-day consumer is savvy, and concerns around greenwashing could quickly erode newfound consumer trust. 

Shreyas Mehta, Founder, Flashmob  

The top trend in fashion retail is digital transformation. E-commerce and digital marketing are at the forefront. Brands create immersive online experiences through social media and interactive websites to cater to a tech-savvy audience. Eco-friendly and ethically produced fashion is in high demand. Brands are embracing sustainable practices, from recycled materials to fair labor, to attract conscious consumers and build loyalty. AI is revolutionizing fashion, from trend forecasting to personalized shopping. This tech integration keeps brands competitive in a fast-paced market. Authentic and diverse influencer voices are key. Brands are partnering with micro and nano-influencers with engaged followings, using video content to captivate audiences. Physical stores are being reimagined as unique, immersive experiences. Pop-up shops, interactive installations, and personalized services drive foot traffic and enhance customer engagement. 

Stuart Henwood, Regional Manager, New Balance, MENA  

Our retail innovation—advanced gait analysis technology—utilizes state-of-the-art assessment tools to analyze individual walking and running patterns and ensure precision in footwear selection. By harnessing data-driven insights, we enhance the shopping experience, offering personalized recommendations that optimize comfort, performance, and injury prevention.

Our innovation extends beyond product selection, as seen through our Uncommon Common concepts at Dubai Hills Mall, Yas Mall, and Galleria Mall. These spaces are designed not just for shopping but also to foster shared experiences. The concept is built to center people, not products, in the consumer experience.

Our store concepts feature a carefully curated assortment of merchandise and integrate compelling visual storytelling accompanying select products. This approach highlights the makers and origins behind each item, effectively showcasing the dynamic intersection of sport and culture. 

We embrace minimalistic design principles to craft a seamless shopping experience. By minimizing distractions such as excessive advertising, the focus remains squarely on the products. This approach allows each item’s inherent quality to speak for itself.

Vikas Chadha, CEO, Jumbo Electronics

One customer behavior trend poised to reshape the retail industry is the growing demand for a seamless, immersive online experience similar to what customers expect in a brick-and-mortar store. As e-commerce continues to evolve, virtual experiences, particularly through VR, will redefine how customers interact with products from the comfort of their homes.

Currently, e-commerce is driven by convenience, but customers still rely heavily on reviews and static information to purchase. VR has the potential to bridge that gap by providing a rich, interactive experience akin to physically visiting a store. Imagine the ability to explore and interact with products virtually, like in a gaming environment, where customers can “try before buying.” This evolution could dramatically enhance the online shopping experience, allowing retailers to offer more than just convenience—they can deliver a fully immersive and engaging customer journey that brings the store experience directly to the consumer’s home. This shift could transform not only customer expectations but also the very nature of e-commerce.

All quotes have been edited for length and clarity*

Source: Fast Company Middle East