Determining location for establishment of a new retail store is major decision in locational analysis. Such a decision was examined for retail settings in the city of Chandigarh. This evaluation was conducted in three steps. Firstly, geo-demand and geo-competition data was analysed using GIS software. In second step four possible alternative locations derived from GIS was further analysed by using kernel density estimation. The findings suggested two best possible alternative sites for new store location. Finally, best location from identified alternatives was found by using analytical hierarchy process (AHP) as a multi-criteria decision technique. Results of AHP helped in ranking the various criteria and sub-criteria. Lastly, global weights of AHP analysis implied that for opening a new store commercial area of ward 17 was most appropriate.