Trading is one of the oldest economical activities. In the beginning, people were practising trade by bartering. They were exchanging goods or resources they had for some other goods or resources they needed to answer their needs. Today’s view of the trade is completely different. People today work in trade to make money. Consequently, trade is an economic activity consisting of buying and selling goods and/or providing services with the purpose of making a profit. Trading can be done as a wholesale trade and as a retail trade. In this diploma paper we will analyse only retail trade. The topic of the diploma paper is “The Analysis of Retail Trade in the Republic of Croatia”. Retail trade refers to buying goods for further sale to the final consumer for their personal use or use in the household. To analyse the topic in the most effective way, diploma paper will start with the theoretical aspect of trade. Particularly, first it will be explained what trade is, what are its tasks and meaning, and the functions of trade. After that there will be say only about retail trade, its structure, specificities of retail trade and its economic significance, and the classification and typing of retail sales. Next follows a chapter about the significance of retail trade in the Republic of Croatia. This chapter contains the analysis of sales capacities in the retail trade, retail network of shops in the Republic of Croatia, the structure of population and retail capacities, sales capacities of stores according to core activity of business subjects who do the retail trade, who the leading retail stores are in the Republic of Croatia, and in the end what is the concentration of generated traffic in retail trade in the Republic of Croatia.