The competitive situation of industry condition on China's retail trade is shown in several respects,such as the overall competition,the structural competition,the regional competition and the internal and external capital competition.Through the in-depth analysis of these situations,the development tendency of China's retail trade competition will be seen in the following several years: the specialized shop will take the place of the supermarket and become the market leader;the general merchandise industry will slowly recover after its gliding down for some time,convenience stores will become future development direction in six kinds of retail trades;the gradient competition pattern is more and more obvious among the development areas;and internal and external capital of the competition will be focused on the supermarket and the specialized shops.