Retro vs Arcade - is there a difference?

I’ve noticed in conversations online and with others that retro and arcade aren’t always meant as the same thing.

If I think of an arcade game, it may remind me of Galaga or Pac-Man at the local pizza joint. But it someone mentions the term retro I think more console or computer games.

So do you use the terms interchangeably or do they mean something totally different to you?