In most of the world's economies, as well as in the Republic of Croatia, retail represents an extremely important economic sector because it significantly contributes to employment and overall economic growth. Under the influence of the process of globalization and technological progress, retail has developed rapidly. In the Republic of Croatia, the importance of retail is best reflected in the fact that, on average, almost a third of household expenditures are related to consumption in retail stores. The internationalization of retail is becoming ubiquitous in today's globalized business environment. In the Republic of Croatia, the entry of foreign retail chains and changes in consumer preferences cause a significant impact on the local economy. Also, internationalization has profound economic consequences on the market, competition, product prices and consumer habits. This thesis is based on the analysis of the effects of internationalization on the structure of the retail market in the Republic of Croatia and investigates changes in consumer habits as a result of global economic dynamics. The paper combines a theoretical framework with empirical analysis to provide a deep understanding of how internationalization shapes the retail sector and consumer behavior. Key points include an overview of trends in the internationalization of retail, economic consequences on the level of competition, product prices and employment, while special attention is paid to changes in consumer preferences towards global brands. This topic is extremely important because of its ability to provide a comprehensive understanding of the impact of internationalization on the local economy, providing concrete insights that are useful for business strategies and public policies. The work brings new insights into the dynamics of the domestic market, providing relevant information for decision makers, entrepreneurs and the academic community.