This paper delves into the strategic integration of Transaction Processing Systems (TPS) within the digital transformation initiatives of the retail sector, focusing on enhancing business performance through advanced business modelling, information system modelling, and leveraging data visualization for business intelligence. We examine strategic frameworks such as the Value Discipline Model and the Agile methodology to align TPS integration with business goals, emphasizing the importance of agility and continuous improvement. The impact of TPS on retail operations is quantitatively assessed through key performance indicators, revealing significant enhancements in transaction processing times, inventory management, and financial reporting accuracy. Challenges including legacy system integration, data security, and skill gaps are addressed through practical solutions like APIs, encryption methods, and comprehensive training programs. Furthermore, we explore the architectural design principles of TPS, emphasizing scalability, resilience, and adaptability, alongside effective data integration and management strategies that ensure data consistency and accessibility. Performance evaluation methodologies are also discussed, employing mathematical models for predicting system behavior and optimizing throughput, latency, and reliability. Case studies highlight the transformative power of data visualization tools in retail, showcasing their impact on operational efficiency and decision-making. This comprehensive analysis underscores the pivotal role of TPS in driving digital transformation in the retail industry, offering a roadmap for organizations aiming to enhance their competitive edge in the digital era.