In modern economic situation when the turnover of retail trading and purchase power of population is decreasing in Latvia, it is necessary for each company to hold out in the market. It is very important to determine target audience, constantly analyse and evaluate competitors and their actions, analyse suppliers, assortment, follow changes in the economy and specific branch to promote the development of trading company. If entrepreneur is able to organize the operation of the company effectively, the company will be ensured with long-term viability. The authors concluded that developed strategy determination model for retail companies helps to determine the best development way for the company as well as its weaknesses, strengths, threats, opportunities and evaluate the effectiveness of trade and work organization in the company. The authors concluded that choosing the development strategy based on developed model, the company in the specific branch will definitely receive economical effect that was proved and demonstrated in the approbation of the model.