-By Ankita Dutta.
Trent, an Indian retailer owned by the Tata Group, announced a 65% increase in sales in the fourth quarter, citing strong sales at its flagship stores, Westside and Zudio budget stores. Total revenue in the quarter ending in March was INR 21.83 billion ($266.9 million), up from INR 13.29 billion in the same period last year. Westside reported a 23% increase in like-for-like sales, according to the company’s statement. However, last year’s COVID-19 restrictions make it difficult to compare figures.
Trent has been aggressively expanding its Zudio fast-fashion outlets, with 352 locations now in operation, as well as its 214 Westside locations, and is aiming to dominate the market for more affordable alternative fashion choices. On the other hand, high inflation across India has forced consumers to cut back on luxury purchases, resulting in a shift towards more affordable local brands, which is a sector that Trent aims to capitalise on.
Shoppers Stop, Trent’s competitor, announced a profit earlier this week due to increasing demand for cosmetic products and better-margin private-label clothing, which Westside also competes with. Notably, the quarter’s overall net profit for Trent was INR 541.6 million, up from INR 1.6 million the previous year.
Trent’s parent company, the Tata Group, is one of India’s largest conglomerates, with interests in everything from steel to salt. The Indian retail industry is fiercely competitive, with a vast array of shopping centres, standalone stores, and online marketplaces vying for market share. However, Trent is confident in its ability to sustain growth, and its shares increased by 0.64% following the news, bringing this year’s gains to about 3%. Trent’s strong fourth-quarter performance is a testament to the brand’s ability to capitalise on the booming Indian budget clothing market. With the Indian retail sector set for further expansion and the economy poised for growth, Trent is on course for steady growth and increased profitability in the years ahead.