This theoretical framework explores the impact of digital transformation on the retail sector in North Africa's context, focusing on Algeria. No empirical data will be used; instead, this article employs qualitative analysis and literature review methods to construct a robust theoretical framework. The theoretical model underscores the critical role of digital infrastructure and consumer behaviour changes in shaping future retail landscapes in Algeria. Policy makers should invest in digital education programmes targeting small businesses to facilitate their transition into e-commerce environments. Retailers are encouraged to adopt flexible business models that leverage digital tools for enhanced customer engagement.