The metaverse is coming to Abu Dhabi’s malls.
David Robinson, the CEO of Al Maryah Retail Company, said that ‘phygital’ — physical and digital — concepts will soon be a part of The Galleria Mall run by the company, which is located on Al Maryah Island.
He added that the company is working on a number of initiatives that will include the metaverse and Web3, which are intended to be implemented in the mall’s physical space.
“We are well advanced in terms of concept development and getting to proof of concept on two of these initiatives, which, for me, are game-changers. They call it ‘phygital’ – physical and digital retail working together – and it’s an exciting area of growth” Mr. Robinson told AGBI.
According to Mr. Robinson, Al Maryah started on its physical and digital strategy at the start of 2021, but work has significantly accelerated over the past six to nine months.
The Galleria has already started using some of the tools that enable retailers to combine in-person and online shopping. According to Mr. Robinson, technology has made it possible for the mall to offer conveniences like contactless interactive wayfinding inside the destination, QR code signups, and online reservation systems via an app.
There is plenty of opportunities for malls and shopping centres to prospect the digital world, for two main reasons. One is that the shopping behavious shown by consumers during the pandemic are here to stay.
A report on the 2023 consumer outlook noted that in the Middle East and Africa, the value share of e-commerce sales has tripled between 2019 and 2022 to 15 per cent. Apart from this, the region also recorded a three per cent growth in overall sales value from 2021 to 2022, which stood at $26b. This means that brick-and-mortar centres can look towards digital innovations for shopping experiences.
The second reason is that malls are no longer spaces for just shopping. More and more malls are incorporating dining and entertainment options as well. Mr. Robinson said that a quarter of The Galleria’s units are food-and-drink outlets. It also houses indoor play areas, cinemas and sport facilities.
Similar trends are being observed in shopping malls all over the Gulf. There will be extensive areas devoted to dining, leisure, and entertainment at the Mall of Saudi, which Majid Al Futtaim is building in north Riyadh. According to research by Knight Frank Middle East, entertainment venues make up more than half of the new retail space being built in Riyadh.
Mr. Robinson added that “the physical in-person experience continues to offer guests aspects that are not easily replicated online.” This means that malls can explore the metaverse to revolutionise entertainment options.
With the UAE retail sector “bouncing back more quickly and strongly than anyone” said Mr. Robinson, there has been an increase in tourism in the country, leading to greater footfall.
Meanwhile, “the UAE government as a whole is trying to build on the metaverse, Web3 and blockchain sectors,” added Mr. Robinson
“Where we’re located on Al Maryah Island, we’re seeing the establishment of blockchain organisations at Abu Dhabi Global Market growing exponentially,” he added.
Mr. Robinson concluded that there is a lot left to be explored, and that the next five years will be crucial in the development of phygital options in malls.
