The retail environment i n P a k i s t a n t h e s e d a ys i s highly competitive. Products and
services that are easily imitated together with informed and demanding consumer markets. Companies try to differentiate themselves from the competition by t he development of their corporate identity. A very fundamental e l e me n t o f ma r k e t i n g communication is store image, as it is a vehicle that affects the customers perception of the store. To be able to invest in store image optimally, retailers should have knowledge of the need to managing store image in order to increase potential sales. Purpose The purpose of the current study was to expand the existing body of knowledge on retail store image and its influence on the perceived merchandise value and patronage intentions of the consumers. Literature Review The literature review focuses on the importance of t he store image for retail differentiation purposes as well as independent (demographics, lifestyle, shopping orientation) and dependent variables (consumer satisfaction) in store image research. Methodology The sample size used for measuring used was 200 from different consumers in retail outlets, students; businessmen etc were used to measure the importance of the various store image dimensions. The questionnaire was adapted for the purpose of reaching all the set empirical objectives. The customer questionnaire included five sections to measure the ideal and the actual store image and the management. Findings Data was subjected to reliability analysis, descriptive statistics and reliability tests. Results indicated t hat At mos pher e, Conveni ence and Pr omot i ons wer e r at ed as most important dimensions according to customer perceptions of the ideal, while Merchandise was the less important dimension and was less acceptable by customers. The congruency analysis yielded 29 of the 55 attributes as congruent. A very less differences customers percept i ons were found for t he Promotion, Atmosphere and Convenience dimensions. Based on the results, recommendations were made to management from which they could infer possible adjustments to the strategic management of store image dimensions.