Described is a retractable bagging station for use in a retail store. The bagging station includes a frame and a bag dispenser retractably coupled to the frame. The bag dispenser holds and dispenses shopping bags. The bag dispenser is retractably coupled to the frame such that the bag dispenser extends out of and retracts into the frame. The bagging station is retractable into the frame so that the bagging station can be stored in a retracted position under a counter, for example, when the bagging station is not needed. When the bagging station is needed, it can be extended out from the frame to be used. The bagging station can be mounted under a counter of a checkout station, for example, so the bagging station can be used at the checkout station when needed.