The main purpose of this thesis was to determine the impact of store image on consumer's behavior and purchasing decisions. The paper describes all the factors that influence the customer's purchase decision. It is defined that cognitions are based on what the customer has gained an impression of a particular merchandise based on their overall experience, opinions and beliefs embodied in the buying process. It is explained how the store decorations, the retail atmosphere (including color, lighting and music) affect customers. Customers will pay attention to the store cleanliness, the availability of the merchandise, the prices of the merchandise and the brand image. The role of staff and the way their approach affects potential customers is also defined. The purchase decision-making process is explained and reasoned down to the smallest detail. Consumer's behavior can be observed and analyzed based on their purchasing process. The idea of this paper is to investigate whether and to what extent the store image is important to customers. Thus, the reason for investing certain financial resources to build an image would be justified, because a positive and effective image brings higher sales and achieves better results for the company's business.