Retail activities turn out to be one of the significant themes playing the role in supply chainrnmanagement and logistics. The major goal of the retail industry or retail merchandising systemrnis to influence possible consumers to purchase a particular products assortment at a particularrnretail store (Risch, 1991).rnThe main purpose of this study is to assess the current status of logistics management practice inrnthe food stuff retail stores with the aim of identifying gaps, potentials and constraints forrndevelopment of effective and efficient logistics management. The outcome of this research willrnhelp the retail stores to understand the strength and weakness of their activity, it will help themrnto realize the gaps, which needs further improvement and it will provide good information forrnfurther researchers.rnThe study focuses on foodstuff retail stores found in Addis Ababa. The subject is studied by usingrnstores found in merkato area specifically Gesho tera and Arab tera as a reference. The studyrnuses descriptive type of research. using a convenience sampling method 30 questioners wererndistributed to the target area, and the data collected is presented using descriptive statisticalrntools such as frequencies and percentage. The evidence from this study shows the currentrnrelation of the retail stores with their suppliers and customers, the quality of the stores stockrnmanagement, the level of managing retile data and their current position on the market. Thisrnstudy revealed that the influence of supplier on the retail stores performance is high, customerrnrelation plays vital role to enhance performance of the organization(the power of customers isrnhigh), the level of stock out on the stores is medium and the current position of the stores on thernsupply chain is good.rnTo be more competitive in the market, the study recommends the retail stores to providerncontinuous training to their employees, should hire a trained store keeper, Manage a good retailrndata, has to hold variety of products and also they have to decrease their dependency on theirrnsupplierrnKey word logistics management, logistics management practices and challenges, supply chain,rnretailing industry and food staff retail.