The outbreak of Covid9 during the recent months, and the resulting issues such as lockdown restrictions and implementation of health protocols, income levels fall, and changes in consumer demand has deeply affected the global retail sector. There have been significant changes in the behavioral patterns of the consumers, because of economic and health considerations. On one hand, demand has risen for purchasing essentials such as food and medications, and has fallen for non-essentials. On the other hand, a number of trends such as increase in shift to online purchasing, willingness to by local food products, increasing importance of product value for money, and loss of loyalty for international brands in favor of more accessible and safer local brands have emerged. These developments have caused important changes in global retail sector and especially in chain stores, given their role in supplying daily needs of consumers to necessary goods. In this report, at first the status of retail sector and chain stores in Iran and the world are explained. Next the effects of Covid19 pandemic on these sectors, the related actions and experiences in retail businesses, and policy responses are discussed. Finally, suggestions are provided for chain stores in Iran.