Purpose: This study aims to examine the influence of third-party logistics providers’ (3PLs) digital transformation maturity on the business performance of pharmaceutical retail stores. Additionally, the study explores the effects of customer orientation and store digital usage on business performance. Store characteristics and inventory models are control variables to mitigate potential confounding effects. Design/Methodology/Approach: A structured survey was conducted among 568 pharmaceutical retail stores to collect data on 3PLs’ digital transformation maturity, 3PLs’ performance, customer orientation, store digital usage, and business performance. Data analysis included correlation analysis, multiple regression analysis, and moderation analysis to assess the relationships between the variables and the potential moderating effects of control variables. Findings: The findings indicate a positive correlation between 3PLs’ digital transformation maturity and performance. High-performing 3PLs demonstrate enhanced supply chain efficiencies and customer service. Moreover, a significant positive association exists between 3PLs’ performance and pharmaceutical retail stores’ business performance. Stores benefit from high-performing 3PLs with improved revenue growth and profitability. Both customer orientation and store digital usage positively impact business performance, increasing customer loyalty and engagement. The control variables, store characteristics, and inventory model moderate the relationships between the variables, accounting for external influences. Practical Implications: This study underscores the significance of 3PLs’ digital transformation maturity and performance in shaping the business performance of pharmaceutical retail stores. Managers and decision-makers should prioritize partnering with digitally mature 3PLs to enhance supply chain efficiency and customer service, resulting in improved business outcomes. Furthermore, adopting customer-centric approaches and embracing digital technologies are essential for enhancing customer engagement and loyalty, ultimately contributing to better financial performance. Originality/Value: This research contributes to understanding the interplay between digital transformation, 3PL performance, and business performance in the pharmaceutical retail sector. The study provides practical implications for industry practitioners, offering valuable insights into optimizing 3PL partnerships and leveraging digital technologies to thrive in a competitive market. Policymakers can use the findings to facilitate the adoption of digital solutions and customer-oriented strategies in the pharmaceutical retail industry.