Organized retail has been spreading its roots in the Indian market for the past one decade and is gradually making a mark on all sections of the society. This paper explores the way organized retail has dramatically changed not only the Indian traditional retailing structure but also the consumption behavior. The consumption behavior was examined with the help of a structured questionnaire, and the results reveal that for consumers the shopping malls or variants of organized retail formats are the preferred type of retail store due to the convenience and variety they offer.

The Indian market has undergone vast changes in the past decade and this has a great impact on consumption. With the Indian as well as international corporates entering into the Indian retail scenario, the market has been divided between the traditional and the organized sectors. The Indian retail scenario at present is facing a situation that is similar to the one faced by the mom-and-pop stores in the developing nations following the emergence of big box retailers. There are various issues that need to be addressed such as what would be the future pattern of consumption, which formats of retail would be preferred by consumers and will the rise of organized retail affect the traditional retailers. This study aims to overcome this gap.

The study also contributes to the understanding that consumers and retailers in most cases have different perceptions in relation to store image and shopping habits, justifying the need for consumer marketing research, which is important in helping retailers implement a real marketing orientation.The paper examines the choice of format the consumer has when he or she decides to buy a particular product. The paper also forecasts the development of organized retail in the future, focusing on aspects with potential effect on purchasing behavior among the consumers.

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