Over the last decade, organisations have started changing methods of their grocery business. Everyday companies are trying to create innovative technique to attract consumers and to retain them for a longer period. In the current grocery environment, sales promotion is considered as a rapid means to strengthen sales of an organisation. In this research undertaken, may help to develop the current modes of promotional grocery shopping and to improve an overall result of an organisation. The purpose of the dissertation is to find how effective is the promotional strategies used by retailer keen to retain the consumers. The research is mainly focused on a grocery retailer Tesco. Tesco Dundrum is found suitable for this research. The subject areas covered in this dissertation are sales promotion, promotion tools, promotional strategies, consumer behaviour, consumer decision process and the organisation in detail. For the research, four hypotheses are developed which are interrelated. The population selected for the research project is made up of 60 samples from in store customers of Tesco Dundrum. A suitable sampling method is applied to carefully select the samples. The classification of samples is done in detail by age, gender, socio-economic status. This helps to identify which group of consumer favors promotional grocery shopping and which group of consumers rejects this trend. The primary and secondary data collection has been done for this research. The data accumulated is analysed through software SPSS (Statistical Package for Social Sciences) in which statistical data is presented in frequency tables and graphical aids. The four hypotheses developed for the research, two were entirely supported and other two were partially supported. From the study, it was identified that lack of perception in promotional shopping is one of the relevant factors that prevents consumers from this method. The results from the analysis indicates a clear understanding of which age group, gender, socio-economic status favors for this shopping trend. Conclusions and practical recommendations are also stated at the end of this research which would be useful for retailers.