This paper base the analysis of data on the Cobb - Dauglas production function, from the national regional section data as sample, in 2010. The paper uses Eviews software to conduct regression model which can help empirical research on the development of China's retail industry. The empirical study show : the input of capital and labor retail has to be increased, and investment and performance are still inbalance; the development of the retail industry has not achieved scaled economy of ; the output of capital investment has bigger influence than the labor input. Finally, according to the results, the paper put forward the corresponding strategies for the development of China's retail industry.