This research tried to clarify the impact of service quality on the customer satisfaction, customer retention and switching barriers in the competitive structure between department store and discount store. We measured the level of service quality by using the methodology which had been adopted in the service quality research area. Using the internet survey method, we gathered data from 750 consumers of each industry. We used various analysis methods such as the regression analysis, t-test, and hierarchical regression analysis. The results reveal different patterns in the two sectors in the retail industry with respect to switching barriers. We conclude that switching barriers play an important role in consumer satisfaction and retention.