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In the early 1990s, Croatia and Slovenia, along with other Central and Eastern European countries, began a process of economic transition from centrally planned to market economy. The main goal of the paper is to compare developments of new forms of retail outlets in Zagreb and Ljubljana after 1990 and to explain similarities and differences in the trend of retail development in two capital cities. The second goal is to determine the level of development of social functions of retail centres and to determine similarities and differences in the function of retail centers in Zagreb and Ljubljana. [ABSTRACT FROM AUTHOR]