Retail environment is changing rapidly. The competition is tough for retailers. Retailers require understanding the competitive environment to succeed in the present business scenario. Retailers require understanding their frugal customers and their tighter spending habits. Retailers require to do continuous innovation and remain relevant in the market. Different retail forms are converging and megaretailers are growing. Retailers require understanding the increasing importance of direct and online retailing and the advances in retail technology. Green retailing is gaining in importance because of increasing consciousness about the environment. Finally, retailers are expanding globally to spread their businesses. Analysis and evaluation of retail environment will sensitize retailers and help them to serve their customers better.