This research aims to examine the relationship between the town centre retail and the town image. We study the influence the retail activity of a town centre may have on the town image. Particularly, we analyze the factors influencing town centre retail dynamics, how these factors relate to each other and how their variation can influence the image of the town centre. A theoretical model is proposed and tested through a case study applied to the Portuguese town of Viana do Castelo.The methodology used in this study refers to a case study research conducted in a town from Portugal named Viana do Castelo. The information was collected through in-depth interviews and telephone interviews by the CATI (Computer Assisted Telephone Interviewing) system, based on the questionnaire elaborated specifically for this study. The structure of this article is as follows: first, we carry out a literature review on town centre management, town centre retail, image of the town and destination image. Then, we propose a theoretical model based on literature. Next, the theoretical model is tested using a univariable method. We conduct a case study focused on the city of Viana do Castelo. Finally, we discuss the results and present the conclusions of the study.