Submitted in fulfillment of the requirements for the Masters Degree In Management Sciences Business Administration, Department of Entrepreneurial Studies and Management, Durban University of Technology, Durban, South Africa, 2016. / The retail industry is arguably one the most prosperous sectors in the global economy. Retail’s importance lies in the fact that it serves as an intermediary between producers and consumers. Given its significance in the everyday lives of people in communities and its role in national economies, the industry operates under extensive competition driven by growth in Information Technology which has dramatically changed the consumption patterns and buying behavior of consumers today. The changes are greatly influenced by different economic factors that impose change in the industry and impact on the bottom line of businesses. Thus, retailers are constantly realigning their businesses in ways that ensure that old customers are kept and new ones are sourced. It is from the foregoing that this study sets out to investigate the influence of transformation on the financial performance of the operational level of retail businesses: A case study. Using a quantitative research method, the study focused on 101 middle level branch managers of The South African Post Office obtained through the simple random technique. The questionnaires were administered to the branch managers and the data obtained was analysed using SPSS software. Findings from the study revealed that the overall business transformation has a positive impact on the financial performance of businesses. The results further revealed that continuous communication with regards to transformation inspires confidence among employees, thereby leading to productivity and the achievement of organisational goals and objectives. Findings also suggest that productive employees contribute positively to the financial performance of the business. The study recommends that retail businesses should consider overall business transformation in terms of structural design change, Information Technology, products and services and employee motivation to keep business relevant in the ever-changing global economy. / M