<![CDATA[Modern and traditional retail are now developing in Indonesia's increasingly dynamic trade landscape due to technological advances and changes in consumer behavior. Through a literature study method that refers to various national and international journals, this research analyzes the forms of competition, competitive advantages, and challenges faced by both retail formats. The results of the study show that modern retail excels in operational efficiency, structured service standards, and the use of digital technology, while traditional retail remains strong through social proximity, price flexibility, and the ability to adapt to local needs. However, both face major challenges such as the rapid growth of e-commerce, changing consumer preferences, and the need for digital adaptation. This study also identifies collaborative opportunities through hybrid business models, distribution partnerships, and the digitization of traditional retail processes, which have the potential to strengthen the competitiveness and sustainability of the retail industry in Indonesia. Abstrak Ritel modern dan ritel tradisional kini berkembang dalam lanskap perdagangan Indonesia yang semakin dinamis akibat kemajuan teknologi dan perubahan perilaku konsumen. Melalui metode studi literatur yang mengacu pada berbagai jurnal nasional dan internasional, penelitian ini menganalisis bentuk persaingan, keunggulan kompetitif, serta tantangan yang dihadapi kedua format ritel tersebut. Hasil kajian menunjukkan bahwa ritel modern unggul dalam efisiensi operasional, standar pelayanan yang terstruktur, dan pemanfaatan teknologi digital, sedangkan ritel tradisional tetap memiliki kekuatan melalui kedekatan sosial, fleksibilitas harga, dan kemampuan menyesuaikan kebutuhan lokal. Meskipun demikian, keduanya menghadapi tantangan besar seperti pesatnya pertumbuhan e-commerce, perubahan preferensi konsumen, serta kebutuhan adaptasi digital. Penelitian ini juga mengidentifikasi peluang kolaboratif melalui model bisnis hybrid, kemitraan distribusi, dan digitalisasi proses ritel tradisional, yang berpotensi memperkuat daya saing dan keberlanjutan industri ritel di Indonesia. Kata kunci : ritel modern, ritel tradisional, persaingan ritel, perilaku konsumen, digitalisasi, e-commerce, strategi ritel]]>
