This article compares the retail industry in China and Australia, highlighting the main retail formats, challenges, and cultural factors affecting the industry. It explores the growth of the retail market in the Asia Pacific region, the expansion of international retailers, and the high consumption rate of the middle class. The article also discusses the challenges facing the industry, such as high operation costs and increased competition from online retailers. Additionally, it examines the cultural factors affecting the industry, such as the Guanxi culture in China and the collectivism value in Australia.