For both Direct and Retail, you are to:
Identify the basic entities. For the present system, determine which entities can be described by the data.
Identify or define the keys for each entity. Determine primary keys, candidate keys, and combination keys.
Lay out the E-R diagram.
Identify and map the data elements
So, you need to create two ERDs – one for Direct and one for Retail. Be sure to keep them separate and to keep the business situations separate between them.