The main goal of this master’s thesis and the empirical research conducted within is to investigate importance of building a retail brand in today’s extreme competition between retailers. It is theoretically defined what is the brand in general, what are the dimensions that effect on building the brand and what is it that determines the strength of the brand. The thesis also explains the connection between customer’s loyalty and the significant role of customer’s loyalty in building retail brand. In addition to all, it was explained how private label in retail store is one of the ways to build a retail brand. In the research part of the thesis, a survey questionnaire is used to examine the customer’s attitudes for better understanding their thoughts on store selection. Based on the results of the survey, a conclusion is made of which factors and to what extent have role in process of building retail brand. All of this can help retail management to make easier decisions and reduce the cost of retail activities.