The purpose of this study was to evaluate the required competency of sales staff in Indian retail industry and also an attempt to measure the impact of these competencies on employee retention. Four competency groups, i.e. personal competency, customer orientation competency, behavioural competency and functional competency groups were taken for the study and their linkage to the employee retention especially for sales staff, were analyzed by using SPSS software. A questionnaire consisted of nineteen variables for four competency groups and nine variables for employee retention was drafted to collect data by survey method. The use of primary data in the study helps us to provide evidence of the relationship between the competency groups and employee retention. In this Study, Sales executives of Indian Organized Retail Outlet in Bhopal City were selected randomly and the study deployed a quantitative research design of 120 respondents. They reflect a significant co-relation among customer orientation competency, functional Competency and Employee Retention. The study contributes to the fields of competency mapping and Retail Industry in India and adds to the HR Body of Knowledge.