You walk into a high-end cosmetic store and are immediately greeted with a virtual reality station. You quickly don a headset and are transported to an immersive spa environment, where a virtual aesthetician guides you through crafting the perfect skincare routine.

This is the essence of the new experimental retail.

Here, consumers don’t just buy. They engage and connect with a brand. Retail is evolving, and so are we.

IT’S A NEW TREND

Experiential retail is about moving away from simple transactions and creating memorable, engaging experiences that connect with customers emotionally.

“In the Middle East, this means incorporating local culture, utilizing technology for individualized encounters, and providing unique in-store activations beyond standard shopping,” says Binoo Joseph, Chief Digital Officer, Cenomi Group. 

He envisions experimental retail towards hyper-personalization, using data and AI to design individual experiences and adding AR/VR to bridge the gap between online and physical retail, resulting in an immersive phygital world.

Nicolas Nath, Founder of Aiconic Labs, highlights another significant trend— the omnichannel approach, where the line between online and physical stores is becoming increasingly blurred. “Customers expect seamless transitions between online browsing and in-store purchasing, with services like click-and-collect becoming more common.”

Moreover, community-driven retail experiences are gaining importance. “At Adidas, we tapped into this by hosting community events such as in-store fashion shows and running clubs, driving awareness and foot traffic while building deeper customer connections.”

Nath says customers want more than just a product transaction—they crave immersive, memorable experiences that align with their lifestyles and values.

IMPACTING RETAIL

Yasser Taher, CEO of Magrabi Retail, says luxury consumers increasingly prioritize experiences over products, seeking deep personalization and exclusivity.

“It’s not enough to offer a high-end product. They expect curated experiences that reflect their tastes and aspirations. This trend pushes brands to offer more—whether through limited editions, bespoke services, or exclusive, invitation-only events.”

The focus on delivering unique experiences is reshaping retail strategies, ensuring the desires of today’s discerning clientele are met.

Joseph also highlights the need for agile technology adoption, data-driven insights, and a customer-centric strategy for a successful digital transformation in the retail industry.

Developing a strong omnichannel infrastructure, utilizing AI and machine learning for operational efficiency and customization, and encouraging an innovative culture is essential. Real-time inventory visibility, supply chain optimization, and the seamless integration of mobile, in-store, and e-commerce experiences are crucial.

He says, “To promote continual improvement and stay ahead of the digital curve, investing in talent and partnerships is equally crucial.”

THE CUSTOMER IS RIGHT

Customer feedback is crucial in shaping experiential retail strategies, particularly when it comes to personalization and store design. Modern consumers’ expectations are constantly evolving, and brands need to remain agile by actively listening to their customers.

Nath says, “When I was at The Giving Movement, we redesigned our stores based on feedback that indicated a desire for more warmth and storytelling. We moved away from cold, minimalistic designs and created spaces that reflected the regional heritage, featuring Emirati-inspired colors, shapes, and forms.”

This helped narrate a richer brand story while making the store environment more inviting and engaging, he adds. “By listening to what customers were saying about the lack of narrative and connection, we delivered a more meaningful experience, which directly translated into improved KPIs like conversion rates and time spent in-store.”

According to Joseph, customer experiences in retail will become increasingly personalized, immersive, and multichannel over the next five years.

AI-powered assistants, virtual try-ons, and augmented reality will become commonplace, allowing customers to interact with brands in new and interesting ways.

In-store, there will be more interactive displays, smart mirrors, and mobile checkout choices. At the same time, online retailers will need to invest in more complex recommendation engines, voice, and social commerce platforms.

According to Taher, cultural sensitivity is critical for customers in luxury retail, particularly in diverse markets like the Middle East. “Today’s luxury consumers value brands that respect and reflect their local cultures. We see global brands curating special collections for religious events such as Ramadan, and it’s been incredibly successful.”

In an increasingly globalized world, luxury brands must be adaptable and considerate, ensuring they connect with customers on a deeper, more personal level.

As consumers value sustainability and social responsibility, merchants must include environmentally friendly and socially conscious practices in their customer experiences.

Nath adds that today’s consumers, especially millennials and Gen Z, demand that brands take a clear stance on sustainability and ethical practices. They seek genuine commitments—from eco-friendly packaging to fair labor practices—woven into every aspect of a brand’s operations. These values foster customer trust and establish emotional connections that enhance long-term loyalty.

THE EXPERIMENTAL FUTURE

Experiential initiatives are becoming essential in cultivating long-term brand loyalty as they foster emotional connections beyond traditional transactions. 

The future of experiential retail in the Middle East looks particularly promising, emphasizing hybrid experiences that blend digital and physical touchpoints. Consumers in this region have a strong affinity for physical stores, especially within the vibrant mall culture. However, their expectations have evolved.

They seek more than just a shopping trip—they want entertainment, personalization, and convenience integrated into their retail experiences. 

“When executed well, these experiences become part of the customer’s lifestyle, encouraging them to return not just for products, but for the deeper connection they feel with the brand,” says Nath.

AI will play a pivotal role in transforming how brands engage with customers, from AI-powered personal shoppers to hyper-personalized content that caters to individual preferences. This innovation will elevate retail experiences, making them more immersive and tailored, perfectly aligning with the high expectations of Middle Eastern consumers seeking unique, customized interactions.

In terms of physical retail, Nath says there will be a rise in pop-up stores and creative retail spaces, such as Al Serkal in Dubai or container shops in Riyadh. These spaces will allow brands to experiment with temporary, highly curated experiences.

“These formats allow established and emerging brands to offer something fresh and exclusive, generating excitement and buzz.”

However, for Taher, the future of experiential retail in the Middle East will revolve around enhancing the customer experience by adding a human element that can’t be replicated online. “Consumers are looking for personalized, in-store services beyond a standard transaction.”

“We envision a future where the human touch is supported by technology—AI-driven style recommendations, fast data access, and seamless omnichannel solutions.”

Even if a product isn’t in stock, customers can receive personalized guidance, blending the best of human expertise with cutting-edge technology to create a truly immersive retail experience.

For Joseph, the future lies in the region’s distinct consumer behavior trends, which include a high demand for luxury, a love of social media, and a growing interest in sustainability.

“Retailers will need to create experiences that cater to these desires, including exclusive events, Instagrammable moments, and environmentally friendly practices,” he says.

The region’s expanding youth population will increase demand for interactive and immersive experiences like gaming and virtual reality. As it grows into a major tourism center, businesses must offer experiences that not only thrill locals but also cater to the needs of international visitors.

Retailers in the Middle East can build experiential retail destinations by combining digital innovation, creativity, and a deep understanding of local customer behavior. This approach will highlight the region’s unique culture and hospitality, setting it apart globally.

Fast Company Middle East’s Next Big Things in Retail Summit, which will be held on November 12 in Riyadh, will cover key topics in retail, such as experiential retail, traditional store optimization, and e-commerce strategies like social commerce and hyper-personalization. It will also discuss how design and innovation will play a role in reshaping the retail landscape. 

Delegates can register here.