This study examines the effect of work environment on retail store employee performance in Malang, Indonesia with the role of work motivation as a mediation. Respondents in this study used 152 respondents who were millennials employees of retail stores in Malang Indonesia. This study uses a statistical analysis of the Structured Equation Model and Partial Least Square. WarpPLS is used as a data processing program for hypothesis testing. The test results show that the work environment has a significant effect of 0.259 on employee performance. The work environment at the retail stores also has a significant effect of 0.742 on work motivation. Work motivation also provides significant results on employee performance of 0.234. The mediating role of work motivation on the work environment and employee performance in retail stores throughout Malang, Indonesia has a significant mediating effect of 0.170