The retail sector in North Africa, including Mozambique, has experienced significant economic growth over recent years. However, traditional business practices often hinder innovation and efficiency. A mixed-methods approach was employed, combining qualitative interviews with quantitative data analysis from a survey of retailers. Data were collected through online questionnaires distributed among 150 randomly selected retailers. Digital transformation has led to an increase in e-commerce sales by 27% compared to traditional retail channels, indicating a growing preference for digital shopping options among consumers. The findings suggest that while digitalization presents opportunities for growth and efficiency gains, challenges such as infrastructure limitations and consumer trust remain significant barriers. Retailers should prioritise investments in digital infrastructure and training programmes to enhance their online presence. Policymakers are encouraged to create supportive policies promoting digital adoption in the sector. Digital Transformation, Retail Sector, Mozambique, E-commerce Growth