Against the background of rapid changes in science and technology and the rapid development of the digital economy, the market landscape is going through unprecedented and profound changes, consumer preferences becoming more and more personalized and diversified, while the e-commerce sector has shown a vigorous development trend. More and more traditional retail companies realize that digital transformation has become an unavoidable trend under competitive pressure. How traditional retail companies can establish a competitive and adaptable business model through digital technology is an urgent problem that needs to be solved nowadays, but many companies have no clear idea about it and lack systematic digital transformation plans. This paper analyses the current situation of traditional retail enterprises and the dilemma of digital transformation. It puts forward suggestions for digital transformation strategies, hoping to help retail enterprises understand and cope with the challenges of digital transformation, enrich the ideas of digital transformation at the theoretical level, and provide references for traditional retail enterprises that are undergoing digital transformation.