Shoppers Stop Limited: Developing ‘Sense and Respond’ Capabilities (A)

In January 2013, the chief executive officer and the department heads of Shoppers Stop Limited, India’s largest department store chain, met to discuss the Indian government's imminent clearance of direct foreign investment applications by major global retailers. To prepare for the upcoming challenges from international competition, the head of the non-apparel department was asked to prepare a strategy. After discussions with the other department heads, he decided to recommend a sense-and-respond business model. However, he was unable to complete his plan because the head of distribution and logistics was unavailable until the following week.<br><br>In part B of this case, the head of the non-apparel department met with the head of distribution and logistics to assess the advantages and disadvantages of centralized and decentralized distribution and logistics structures. The head of the non-apparel department was considering an expansion to an online business, and knew that a dedicated, efficient, and cost-effective distribution and logistics system would ensure its success. He had a preliminary plan for a sense-and respond strategy but had some lingering questions. Which key elements of this strategy did the organization already possess? How could Shoppers enhance these capabilities in the future? Would the company need a major distribution and logistics restructuring to improve its sense-and-respond capability?

This two-part case is suitable for graduate and MBA courses in retail, supply chain, and service operations management, as well as in information technology. The case can also be used as an introduction to managing a department store retail chain.<br><br> After completion of part A of this case, students will be able to<ul><li>understand the retail operations of a large departmental store chain;</li><li>understand the need to capture fast-changing customer preferences;</li><li>appreciate the ability of the sense-and-respond business model to influence the future of a retailer and enhance its competitive advantage;</li><li>describe the role of various technologies in making the sense-and-respond business model an effective strategy for an organization; and</li><li>analyze the decisions involved in improving the purchase and supply processes of a retail departmental store chain.</li></ul>

• Retail, Supply Chain, Services, IT