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The retail sector is one of the fastest moving sectors in India. Its target audience is mainly youth who constitute 50% of the Indian population. Retail brands need to be positioned for this segment, and one of the strategies used is celebrity endorsement. Television Audience Measurement (TAM) Media Research found a 49% growth in celebrity advertising in 2007. There are many studies that have been conducted on celebrity endorsements, but there is no study which has been done exclusively to understand the perception of consumers about celebrity advertising for retail brands. The present study aims to mitigate this gap in the existing literature. For the present study, the survey method, using a structured questionnaire, was employed on a sample of 186 respondents. The findings of the study revealed that customers prefer female celebrities over male celebrities. The preference for celebrities was more for sensory products than cerebral products. Customers want celebrities to entertain them as well as give information pertaining to the products in the advertisements. The factors that customers perceived to be important in selecting the celebrities for retail brands were proficiency, reliability, pleasantness, elegance, distinctiveness, approachability and non-controversial.