Over the past years, especially after Covid, organizations all over the world have witnessed digital transformations to cope with both national and international requirements to maintain their competitiveness. The digital shift varies across different countries and different industries, and hence it is essential to study the effect on different topics as sustainability. Numerous researchers have studied digital transformation, yet there remains a notable lack of research addressing sustainable digital transformation in Retail industry, particularly in of Bahrain. This is descriptive quantitative cross-sectional research with applied outcomes. Data was collected through a structured survey with the various stakeholders involved in assessing various factors, including the pace of digitalization as well as sustainability objectives. Statistical analysis and hypothesis testing reveals that digital transformation positively impacts sustainability outcomes, and results indicate that digitalization drives inventiveness, and contributes to sustainability goals. Effective digital transformation and sustainability initiatives necessitate the involvement of diverse stakeholders, such as employees, customers, suppliers, and communities. Businesses are recommended to develop strategies for continued support and collaboration in digital transformation and sustainability initiatives. Future research can address opportunities and challenges associated with digitization including human factors across different industries.