The subject of research in this paper is the impact of a strategic approach to digital transformation on retail sales in the time of Covid-19. The paper analyzes the retail sector of the Republic of Croatia, given that it is one of the sectors directly affected by measures to combat the pandemic. Retail is faced with major challenges due to the high mobility of consumers, the need for a strong orientation to monitoring and analyzing consumer behavior, and the transition to online, i.e., e-commerce. Therefore, the digital transformation of the retail business is inevitable. Digitization in the business context is defined as the concept of more automated and digital operations. Digital transformation refers to the use of digital technologies to transform a company that creates business value. Retail companies in the Republic of Croatia are aware of the necessity of digital transformation, but it has not drastically changed due to Covid-19 and changes in the operations of most companies. Although the changes are visible, they are still small steps of progress. Future trends will certainly continue to impose the necessity of complete digital transformation of retail companies. Retail companies must change their traditional way of working, get closer to the customer and enrich their shopping experience. All of the above is possible only through technology and digital transformation.