The modern Indian consumer is seeking more value in terms of improved availability and quality of commodity, pleasant shopping environment, financing options, trial rooms for clothing products, return and exchange policies, competitive prices and above all a good parking facility. This has created a rapidly growing opportunity for organised modern retail formats to emerge in recent years and grow at a faster pace. Inefficiency in the traditional supply chains offers further opportunity for the organised players to draw on this large market even though lack of consumer culture, and low purchasing power restricted the development of modern formats. Migration from unorganized to organised retailing is slowly and surely being witnessed in India especially after the opening up of economy in the late 90’s. This article tries to pinpoint the issues and challenges being faced by this sunrise sector.