As a natural result of globalization, impact of industrialization is increasing on retailing industry in our country, and small-sized traditional types of retail shops have to withdraw from the market one-by-one. On the other hand, due to new living areas with high population, shopping malls are opening up in these regions. This change of concepts that used to appear only in large cities, are also becoming more common in smaller towns. Salihli is the second largest town of Manisa in terms of population and is both agro-based and industry-based. This marketing study focuses on impacts of shopping malls increasing in the city center of Salihli on smaller local retail shops, and what kinds of structural changes they create.