China's retail industry is developing well, and strong market demand also provides a great guarantee for its development. In the new era, effective innovation is needed in the development of the retail industry, which has been a basic choice. In recent years, the retail industry has been innovating in development, and has achieved some good results. However, the development and innovation of the retail industry will be affected and restricted by various factors. Under such influence, many problems are likely to appear in the development and innovation of the retail industry, which increases the degree of responsibility of both. This article will specifically analyze the problems in retail development and innovation, and put forward more effective development and innovation countermeasures.