Until recently the retail enterprise (the shop) has been comparatively neglected by economic theorists, partly because they assigned little role to retailing. The growth of interest in the problem in recent years reflects the development of models of imperfect information and the revival of interest in location theory. Pricing theory for the retail enterprise, however, remains a neglected area. After surveying existing models of retailing, the paper concentrates on the idea that the shop saves its customers costs by assembling goods in one place. This introduces an essential non-convexity and importantly affects the conditions under which shops compete with each other and the constraints on their price setting. Under the admittedly unrealistic assumption of full buyer information, a theory of retail pricing is developed.