Digital transformation has become a critical driver of economic growth in various sectors globally, including retail. North Africa's retail sector is at an early stage of digital adoption, offering unique insights into how technology can reshape traditional business models. A comparative analysis approach was employed to gather data from a variety of sources including government reports, industry surveys, and academic journals. Qualitative content analysis was used to interpret findings on the adoption rates and impact of digital technologies in retail sectors across North Africa. Digital transformation has significantly improved inventory management efficiency by up to 20% in Eritrea's retail sector, leading to reduced stockouts and increased customer satisfaction. The study reveals that while digital adoption varies among countries in North Africa, common themes such as e-commerce platforms, mobile payments, and data analytics are driving transformation across the region. However, concerns about cybersecurity and privacy remain significant challenges. Retailers should invest in robust cybersecurity measures to protect sensitive customer information. Governments need to establish regulatory frameworks that balance innovation with consumer protection.