Digital transformation is the topic of the retail industry at present. Digitalization is gradually changing the resource capability system and value creation mode for enterprises. Based on a multi-case study of four representative new retail enterprises in China， it proposed a framework to explain the digital transformation mechanism. Digital ability and value creation ability are the core issues of digital transformation mechanism of enterprises. Digitalization ability should focus on improving the ability of digital infrastructure construction， application and digitalization governance， and avert digitalization trap and bridge digital application gap. Value creation ability should focus on expanding capabilities based on digital consumers， digital production factors and digital ecosystem. On one hand， it enriches the research perspective of digital transformation and enhances the explanatory power of theory. On the other hand， by using multi-case analysis， it extends the previous retail-centered research to entities such as digital platforms， manufacturing enterprises and vertically-integrated enterprises. The conclusion contributes to the theoretical innovation of the mechanism of retail digital transformation， and has enlightening implications to the solution of the practical problem of “transforming is suicidal， but not transforming is waiting to die” in retail digital transformation.