Retailers create value for customers by performing various functions such as providing an assortment of products and services, breaking bulk, holding inventory, and they are the final link in the distribution channel linking manufacturers to the customers. Customers product needs can be met through various channels i.e. traditional retail shops, modern retail shops, cooperative arrangements, direct sales, and online shopping. Retail in India has witnessed new types of shops opened; formats changed, and shops closed. Large domestic players who entered the grocery retail segment with ambitious plans had to slow down, take a rethink and change. Traditional retailers are facing stiff competition where modern retailers have opened shops. A Quota Sample of 559 Households of Low, Medium, and High income groups was studied through the Survey method, in Thane City. This helped to gather insights into consumer’s reasons for switching / changing types of shops. Data collected was analyzed statistically to understand the extent of shift in consumers purchasing amongst Traditional and Modern shops.