This paper explored how grey market consumers perceived service quality at their favorite department stores and examined how their perceived service quality might have impacted their satisfaction and customer retention (including positive word-of-mouth and repeat purchase intention) of those stores. In short, this paper focused on the relationships between perceived service quality, customer satisfaction and customer retention of the grey market segment specifically in the department store settings. Three factors, namely Personal Interaction, Store Image and Convenience were identified as the key service quality dimensions perceived by grey market consumers at their favorite department stores. The result also showed that Personal Interaction was the most important factor in determining grey market consumers satisfaction, customer retention and their positive word-of-mouth, while Store Image was the most important factor for grey market consumers repeat purchase intention.