Digital transformation is reshaping various sectors globally, including retail in North Africa. Ethiopia's retail sector faces unique challenges and opportunities due to its economic growth and digital connectivity. A mixed-methods approach combining qualitative interviews with quantitative data analysis was employed to explore perceptions and practices within the retail industry in Ethiopia. Digital adoption among retailers varied significantly, with approximately 60% of small businesses reporting increased sales through digital channels. However, only 35% reported challenges related to data privacy and security issues. The findings suggest that while digital transformation offers opportunities for growth, it also presents significant challenges in terms of regulatory compliance and consumer trust. Retailers should prioritise training employees on digital marketing tools and ensure robust cybersecurity measures are implemented to mitigate risks associated with data privacy breaches. Digital Transformation, Retail Sector, North Africa, Ethiopia