The competitive environment in today’s retail industry, with large corporations as well as increased competition from e-commerce, has resulted in the share of sales of micro retailers declining and their competitive position weakened in relation to the larger organisations. However, there are still micro retailers that have been able to stay successful.

This thesis has implemented an in-depth case study of Våran Kåk, a micro retailer within the apparel sector in Jönköping. Våran Kåk has been able to remain successful despite the increased competition within their industry. The empirical investigation consists of interviews conducted with a manager as well as an employee at Våran Kåk, mystery shops and observations in order to gain an understanding of what makes them successful.

The research resulted in a model for successful micro retailers, describing how micro retailers can remain successful and competitive in the tough market climate by giving good perceived service, building profitable relationships and having their customers remain loyal.