This paper makes an analysis on the secure state of the retail industry of Shanghai, China from 2002 to 2012.An indicator system of 9 indicators in 3 dimensions is built and the method of factor analysis is used to make the empirical analysis. The research indicates that the retail industry of Shanghai presented a more and more unsafe trend from 2002 to 2012, which mainly because that the fully open of China's retail industry has accelerated the expansion of foreign retail enterprises in shanghai from 2004. The control of foreign retail enterprises constantly reinforces and the power of local retail enterprises tends to weaken are the main reasons that make the retail industry of Shanghai unsafe.
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