Abstract
This paper provides a comprehensive examination of the digital transformation within the retail sector. Through a combination of theoretical analysis and empirical investigation, we explore the impacts, advantages, disadvantages, and future prospects associated with the integration of digital technologies in retail operations. This study draws upon a wide range of academic literature, journals, and books to present a thorough understanding of the subject. Digital transformation has profoundly reshaped the retail sector, enhancing customer satisfaction, increasing sales, and improving decision-making processes. This study integrates theoretical frameworks such as the TOE model with empirical data to examine the impact of digital technologies on retail businesses. Key findings indicate a significant increase in customer satisfaction scores, revenue growth, and operational efficiency, demonstrating the positive outcomes of digital adoption. However, challenges such as cybersecurity threats, workforce displacement, and resistance to change remain critical concerns. The study further explores the advantages of digital transformation, including enhanced customer engagement and data-driven decision-making, alongside its disadvantages, such as high implementation costs and security risks. Practical applications in e-commerce, IoT-driven inventory management, and AI-powered personalization are discussed. The paper concludes with strategic recommendations for businesses, emphasizing cybersecurity investments, workforce training, and change management. Future research directions include the role of emerging technologies like blockchain, evolving consumer behaviors, and sustainable retail practices in a digitalized landscape.