E.Schrodinger and its First Re­tail Store in In­dia

The Economic Times - - Career & Business Life/companies -

By the early 1990s, with 126 stores across Ger­many, E.Schrodinger be­gan to wit­ness the first signs of sat­u­ra­tion in the Ger­man re­tail in­dus­try. It was then that the com­pany de­cided to ex­plore new mar­kets.

By 1997, Schrodinger had set up five stores out­side Ger­many. De­spite be­ing largely a Euro­pean chain, Schrodinger re­alised that the real ac­tion was hap­pen­ing in Asia.

With a bustling econ­omy and ris­ing in­come lev­els, In­dia in par­tic­u­lar, was emerg­ing as the blue-eye­d­baby of re­tail­ing. It was only by the fall of 2014 that the se­nior man­age­ment at Schrodinger drew up a strate­gic roadmap to make its foray into the In­dian re­tail mar­ket. Ac­cord­ing to the road map, the com­pany would fo­cus on the four largest metropoli­tan cities in the coun­try and try to un­der­stand the psy­che of the In­dian con­sumer. Schrodinger de­cided to make its foray into In­dia by set­ting up shop in Arcadia, one of the largest metropoli­tan cities in the coun­try, which was at the fore­front of the re­tail­ing rev­o­lu­tion.

Schrodinger iden­ti­fied seven prospec­tive lo­ca­tion sites and Ro­hit C Suresh, Vice Pres­i­dent, Real Estate, was ex­pected to rec­om­mend to the man­age­ment its first lo­ca­tion in the

Su­gandh Shoppe coun­try. The com­pany op­er­ated in four for­mats – hy­per­mar­kets, su­per­centers, su­per­mar­kets and con­ve­nience stores. Hy­per­mar­kets, of which Schrodinger had 46, was the most op­er­ated and pre­ferred for­mat.

How­ever, the lo­ca­tion of the first store was a cru­cial de­ci­sion from the com­pany’s per­spec­tive since the right lo­ca­tion would give the right head­start to the com­pany and set the foun­da­tion for fu­ture lo­ca­tion de­ci­sions. The lo­ca­tion de­ci­sion must take into ac­count sev­eral is­sues, in­clud­ing con­ve­nience to cus­tomers and the com­pany’s rev­enue and profitabil­ity goals. The store lo­ca­tion re­quires a ju­di­cious mix of data tech­niques as well as an as­sess­ment of qual­i­ta­tive fac­tors of the site for the fi­nal de­ci­sion to be taken. Ro­hit had to make a pre­sen­ta­tion for the se­nior man­agers of his com­pany and he wanted to ex­plore set­ting up a hyper­mar­ket. Which site must Ro­hit choose in Arcadia for Schrodinger’s first store in In­dia?

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