Yes, retry is in the scrabble dictionary

...and is worth 7 points by itself.

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Retry Definition

verb-transitive

To try again.

from The American Heritage Dictionary of the English Language, 4th Edition

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Top Words by points	Points
retry	8

2 letter words with RETRY	Points
er	2
et	2
re	2
te	2
ye	5

3 letter words with RETRY	Points
err	3
ret	3
rye	6
try	6
tye	6
yet	6

4 letter words with RETRY	Points
trey	7
tyer	7
tyre	7

5 letter words with RETRY	Points
retry	8
terry	8

Found 16 words in 0.14718 seconds