Past exam of the topology and groups course of the University of Oxford / 2023 / 1 / a / ii / Solution

Yes. Take $X=S^1$, the circle, and $A=\{1\}\subset S^1$. The constant function $r(z)=1$ is a continuous map and satisfies $ri={\mathrm{id}}_A$, so $A$ is a retract of $X$.

However, their fundamental groups areA homotopy equivalence between path-connected spaces induces a group isomorphism of their fundamental groups, allowing the usual change of base point. The infinite cyclic group is not the trivial group. Therefore a retract need not have the homotopy type of its ambient space.