The retail industry is changing worldwide, especially in developing nations. This retail transformation is a result of changing lifestyles, increased disposable income, growing brand consciousness and changing consumption patterns of consumers. In the process of meeting these growing expectations of consumers, there are noteworthy initiatives adopted by retail organizations. Brand equity of a retail store is seen as a major factor influencing buying decisions and repurchases intent of consumers' world over.The present study has analyzed the consumers' store choice decisions and its influence on consumer loyalty, with brand equity of retail store as a mediator. The findings of the study have established a positive link among factors influencing store choice, the brand equity of a retail store and loyalty towards the retail store. The study further has proposed and validated a model determining the mediating relationship of brand equity of a retail store with store choice decision and store loyalty.