Technological advancements occur continuously without our notice, requiring business to adapt to them in all aspects of life. Most firms now recognize the importance of digital transformation as a business strategy for improving services and business efficiency. Alfamart, a minimarket company in Indonesia's retail industry, is facing a digital transformation. Alfamart offers a range of product categories to accommodate diverse family requirements. The acceleration of digital transformation in Indonesia necessitates the application of digital technology as a digital platform that serves as the foundation for the Industry 4.0 ecosystem by including technologies such as IoT, big data, artificial intelligence, and augmented reality. This study uses quantitative and descriptive analysis approaches to identify the characteristics that challenge digital transformation at PT Sumber Alfaria Trijaya, Tbk (Alfamart), particularly in the International Business & Technology division. The research employs factor analyses EFA (Exploratory Factor Analysis). According to the research results, from the 8 (eight) factors that determine the digital transformation of the Alfamart, 4 (four) significant factors formed the digital transformation challenges of the Alfamart, particularly in the International Business & Technology section. These challenges include information technology, technology adaptation, agile, and digital business.