Digital transformation has become a pivotal force in reshaping various sectors globally, including retail. This study examines its impact on the North African retail sector, focusing on Comoros. A mixed-methods approach combining quantitative data analysis from national surveys with qualitative insights from in-depth interviews was employed to explore the impacts of digital transformation on retail businesses in Comoros and four other North African countries: Egypt, Morocco, Tunisia, and Algeria. Data collection methods included questionnaires for retailers and semi-structured interviews for policymakers. Digital technologies have significantly enhanced online sales platforms in Comoros, with a notable increase of 25% in e-commerce transactions over the study period, though traditional brick-and-mortar retail remains dominant. The findings suggest that digital transformation can foster economic growth and innovation but also present challenges such as regulatory gaps and uneven digital infrastructure development across North Africa’s countries. Policymakers should prioritise fostering a supportive digital environment, including improving internet connectivity and offering tax incentives for digital businesses. Additionally, there is a need for harmonized policies to facilitate cross-border e-commerce activities within the region. digital transformation, retail sector, North Africa, Comoros, policy mechanisms