The subject of research in this study was to investigate the specifics of retail trade in the world and in Croatia and within that, determinet the current problems of employees in this industry. All this is supposed to lead to the creation of assumptions for better and more systematically motivate employees in order to create efficient business organization.With this work the importance of retailing in both Croatia and in the world has been established as this sector occupies a large part of the GDP in the Republic of Croatianand employs the largest number of workers (after the processing industry).According to modern concepts of organizational success, motivated workforce has leading position at achieving competitive advantage for organizations. All the attention is no longer focused on the capital, machinery, and equipment but on theworkforce that contributes to the achievement of organizational goals with quality and personal organization. On this basis, it is easy to conclude that employee motivation is increasingly gaining importance.Some authors even point out that in the retail sector key to success is employee as the contact point between the company and customers. On employees may be affected by factors of tangible and intangible motivation. The first group refers to the so-called direct and indirect financial incentives, such as salary, bonuses, job security and permanent employment, while the second group refers to the method of keeping of the superior, opportunity for advancement at work, work environment, etc.After reviewing the available literature, it was found that the research on the topic of employee motivation in retail is insufficient as all processed researching are relating to other sectors of activity or to the employees as a whole. Therefore, it was concluded that the retail companies who are planning introduction and implementation of the system of employees motivation do not have the relevant information on which of the characteristics of the employees to orient.This is why, as a part of this work, the research was coundacted. The aim of thisresearchwas to determine which motivational strategies affecting employees in the stores of retail and how they affect employees regard to gender, age, work experience and the highest completed level and field of education and also to define appropriate motivational system that would, in view of these factors, affect the quality of work of employees in retail stores. As result of research the motivational system was created and certain assumptions regard to employee motivation in retail where given.