We live in a time where globalization is opening up markets and making the world more connected than ever, digitalization is changing the way we communicate, shop and live, the technology is developing day by day and we barely feel the boundaries between the physical and the digital world. All these changes have a tremendous impact on the consumer and the consumer is the generator of the change in retail today. The market as we know it is changing and every day, we encounter a new business model and form of shopping. We live in an exciting time where retailers will be looking for a new way every day to surprise consumers, give them exciting and new experience and create something worth sharing on social media. The aim of this work is to show a connection between digitization and consumer behaviour changes, and how it transformed retail. It introduces readers with digitalization and consumer behavior, development of eCommerce and how it changed the way we conduct business. Furthermore, we focus customers and the way he makes a purchase decision, changes in customer journey, his needs and wants, as well as new business models brought by changes in consumer behaviour. Finally, with the examples from the industry we will prove the thesis on consumer behaviour and retail changes and describe how the retail of the future will look like. The aim is to give show the importance of digitalization of retail and understanding the needs of consumers and how by combinining those two can give out great business success.