The 2024 Global Digital Shopping Index, Saudi Arabia Edition, highlights Saudi Arabia's fast-changing retail landscape, which is increasingly dominated by Click-and-Mortar™ shopping experiences. This trend, marked by consumers’ preference for combining digital conveniences with in-store purchases, positions Saudi Arabia as a leader in digital shopping adoption. The study, commissioned by Visa Acceptance Solutions and conducted by PYMNTS Intelligence, surveyed over 1,000 consumers and 400 merchants in Saudi Arabia, providing a comprehensive overview of shifting shopping behaviours and digital adoption.
Saudi consumers are increasingly drawn to Click-and-Mortar™ shopping, with 55% reporting that they recently engaged in digitally assisted in-store shopping or online ordering with in-store pickup, a higher percentage than in other surveyed markets like the U.S. and the U.K. Younger demographics, particularly millennials, are leading this shift, with approximately 59% preferring Click-and-Mortar™ approaches. This trend highlights an increasing demand for retailers to offer a seamless integration of digital and in-person shopping experiences that align with the convenience-driven habits of modern consumers.
Merchants in Saudi Arabia have responded by offering a wide range of digital shopping features, providing on average 28 out of 34 identified features, which is the highest among the countries surveyed. However, many consumers are unaware of these features, with an average of seven preferred options going unnoticed, underscoring a critical opportunity for retailers to better promote their digital tools. The features that Saudi consumers value the most include the ability to use preferred payment methods, easy navigation of online shopping carts, and mobile-optimised websites. Furthermore, 77% of consumers express a strong desire for price-matching capabilities, while others favour options like product location assistance within stores and digital profiles for streamlined shopping experiences.
A closer look at shopping preferences reveals significant differences between grocery and non-grocery purchases. Consumers shopping for groceries prefer traditional in-store experiences, while those purchasing non-grocery items frequently choose online or digitally enhanced options. Merchants have observed that offering Click-and-Mortar™ experiences can substantially boost satisfaction, with consumers rating their experiences 66% higher than traditional in-store-only shopping. In particular, pickup purchases demonstrate an 81% improvement in satisfaction, illustrating the appeal of flexible shopping options in Saudi Arabia's competitive retail landscape.
Saudi Arabia’s retail sector is on the cusp of transformation, with Click-and-Mortar™ shopping gaining traction as a preferred model among consumers. By focusing on feature visibility, optimising mobile compatibility, and prioritising popular features, retailers in Saudi Arabia can stay ahead in a market that continues to embrace digital integration. With its rising demand for convenience and enhanced shopping experiences, the Saudi retail sector holds substantial promise for local and international businesses looking to capture this digitally engaged consumer base.