Digital transformation has become a critical factor in the retail sector's growth across North Africa, with Tunisia as a prime example showcasing significant changes driven by digital innovations. A comparative study approach is employed, leveraging secondary data sources including government reports, industry surveys, and academic journals. The research focuses on understanding the trends, challenges, and opportunities brought about by digital transformation in retail sectors across Tunisia and selected neighboring countries. The analysis reveals a notable shift towards e-commerce platforms among retailers in Tunisia, with an estimated 30% increase in online sales compared to traditional brick-and-mortar stores over the past three years. Digital transformation has significantly reshaped the retail landscape in Tunisia, offering both opportunities for growth and challenges such as increased competition from digital giants and the need for technological adaptation by small businesses. Retailers in Tunisia are advised to invest in e-commerce platforms and digital marketing strategies to remain competitive. Policymakers should consider implementing support programmes to assist smaller retailers in adopting digital technologies. digital transformation, retail sector, North Africa, Tunisia