Digital transformation has become a critical aspect of business strategy in various sectors worldwide, including retail. Morocco's retail sector is no exception as it seeks to navigate the challenges and opportunities presented by digitalization. An action research approach was adopted, involving a series of workshops with key stakeholders in the retail industry. Data collection included surveys, interviews, and observations to gather qualitative insights into current practices and future aspirations. Key findings indicate that digital transformation has led to significant improvements in operational efficiency, with an average time reduction of 30% in inventory management processes. Additionally, there is a notable increase in customer engagement through enhanced online shopping experiences, evidenced by a 25% rise in mobile app downloads. The findings suggest that digital transformation plays a pivotal role in enhancing the competitiveness and sustainability of Moroccan retail businesses by improving operational efficiency and fostering stronger customer relationships. Retail businesses should prioritise investment in digital technologies to stay competitive, while also focusing on employee training programmes to ensure they can effectively utilise these tools. Additionally, developing robust cybersecurity measures is essential to protect sensitive data. digital transformation, Moroccan retail sector, operational efficiency, customer engagement