The research study intends to analyse the effect of organised retailing on small retailers in the unorganized sector, to work out its impact on consumers, to find out its impact on prices and to analyse the relevant constraints of organised and unorganised retailing. The study reveals that tremendous pressure will be on urban infra structure. Towns and cities will be overcrowded and problems of transportation, shift of purchasing power will be made from village to town, purchasing power will be increased, literacy and education will be increased, much more comfort and leisure will be sought by the people. No. of organized retail shops will be increased. As a result, middle class people are planning to make maximum utility of their income amount. In organized retail shops, consumers would be able to purchase different commodities at reasonable prices. From the producer's point of view, organised retailing is demand-based, No. of market intermediaries is limited or nil. Producer's share in consumer's rupee is much higher. Involvement of big commercial house will be made.