A bakery is a shop that sells bread and other baked goods. Your neighborhood bakery might specialize in frosted cupcakes.
Some bakeries are storefronts selling a selection of pies, cakes, breads, and cookies, while others are simply places where these items are made, to be sold in other shops. People who work in a bakery are bakers — their work involves mixing batter, kneading dough, and cooking baked goods in hot ovens. The earlier term was bakehouse, which was replaced in the US by bakery in the 19th century.