Indian retail industry is one of the pillars of the Indian economy and accounts for 14 to 15 percent of GDP and 15 percent of employment. Indian Retail is growing fastest compared to other countries with more than 2.25 billion people. Indian retail luxury market is the 12th largest in the world. So many Indian and foreign companies are showing interest in Indian Retail. Over 6000 shopping malls are operating, and over 800 malls are under construction in India. This is benefiting Indian retailers, foreign retailers, and consumers as well. Nevertheless, the Indian retail industry is still not developed to avail opportunities. Retail outlets face so many challenges. A significant portion of the Indian retail industry is driven by big giants like Bharti, Reliance, Future Group, Tata, Birla, Etc. The study will include understanding the major and minor challenges the retailers face, like competition, less skilled human resources, government policies, tax, Kirana stores, Etc. Research is conducted to investigate the major and minor challenges retail outlets face. A structured questionnaire with 23 questions was used to collect the primary data from 55managers of Karnataka to know their perception about different challenges faced by Indian retail outlets.