A Study on Digital Transformation in Retail and Its Impact on Customer Loyalty and Engagement

Digital transformation has emerged as a pivotal force reshaping the retail industry worldwide. The widespread adoption of technologies such as mobile applications, social media platforms, artificial intelligence, proximity marketing, and omnichannel integration has significantly altered how retailers engage with customers and build loyalty. The present study aims to examine the impact of digital transformation on customer loyalty and engagement within the retail sector, with specific reference to the Chennai retail market. The study employs a descriptive research design and primary data was collected through a structured questionnaire from 213 respondents comprising store managers, owners, and marketing personnel across retail establishments. Data were analyzed using percentage analysis, Chi-Square test, One-Way ANOVA, Cronbach Alpha reliability test, Independent t-test, Pearson correlation, and linear regression analysis. Findings indicate that a majority of retailers have adopted or intend to adopt digital tools, and these technologies have demonstrably improved customer communication, revenue generation, and business planning.