Retail environments are closed environments that exert a significant impact on consumers affect, cognitive and emotional behavior. Store atmospherics or design factors is considered one of the most prominent retail environmental stimuli which influences people to enter, remain in and utilize the environments. Numerous studies and researches support this notion; however these studies provide neither a framework nor a methodology to determine what design factors or atmospherics influence this decision. The purpose of this thesis is to propose a framework that can explain the relationship between the 'atmospherics' and the consumer's emotional responses. This framework is developed from the Mehrabian and Russell theory and the design theories by Kevin Lynch and Roberto Rengel. Grounded Theory Approach is adopted to critically analyze the existing theories which are further integrated for this new interpretation. The proposed framework is then applied as a case study in an actual design process for the retail - mixed use space of E E Warren Opera House, located in Greenfield, Iowa. The design analysis and design development are conducted on the basis of the proposed framework. To understand the application of the framework better the redesigned space was exhibited to the committee members of the E E Warren Opera House and a questionnaire was given to them to learn about their emotional reaction to space. The proposed design based on the framework was successful in inducing positive emotional reaction among patrons which would further increase the business both for local customers and destination visitors from outside and within Greenfield. This also reveals the potential use of the framework for such a design application.