Digital marketing has become an important tool for customer communication, promotion, and sales growth among retail shops in Pollachi. The study was conducted among 143 retail shop owners using a structured questionnaire and descriptive research design. Statistical tools such as percentage analysis and chi-square test were used for data analysis. The findings reveal that most respondents are aware of digital marketing and mainly use platforms such as WhatsApp, Instagram, and Facebook for business promotion and customer engagement. The study identifies major challenges such as lack of time, financial constraints, high costs, difficulty in handling digital marketing tools, lack of skilled staff, and insufficient training. Many retailers also do not have websites and depend mainly on simple social media platforms. The study suggests providing training programs, improving awareness, and offering affordable digital solutions to enhance digital marketing adoption and support the sustainable growth of retail businesses in Pollachi.