The paper is an analysis of development of trends in the retail industry and is based on various secondary reports, studies and information. The paper explains why development of modern retail depends upon economic development of the country, nature of demographic profile such as participation of women in the work force, working hours, level of per capita income etc. Large retailers are able to use technology for merchandising, managing supply chains and sourcing directly from producers. Modern large scale retailers are using various measures through adoptation of technology to reduce costs and benefits of cost reduction are passed on the customer. Due to other efficient management skills, some of the retail sectors are able to survive and grow even during recession.