With the entry of international retail giants into China's retail market, China's domestic retail chain operation is faced with unprecedented challenges, and many deficiencies have been exposed in the competition. Chain operation has become one of the mainstream development directions of China's commodity retailing. China's retail chain operation started late, after several years of development, achieved certain achievements, but there are still some problems, restricting its healthy development. This paper attempts to analyze the development status and main problems of China's retail chain operation. And put forward corresponding countermeasure to these problems.