Despite sluggish demand and restrained consumer spending, Tata‘s Trent is expected to have outperformed other Indian apparel chains last quarter by rapidly opening more of its youth-focused, low-priced stores.
Zudio, offering a range from dresses to perfume priced under INR 999 rupees ($12), appeals to young consumers seeking frequent wardrobe updates within a constrained budget.
Meanwhile, competitors have had to increase prices to offset rising costs, with shoe retailer Metro Brands even removing footwear priced below INR 1,000 rupees from its shelves. These price hikes further dampen sales, especially as consumers remain cautious about spending due to persistent inflationary pressures.
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Arvind Singhal, chairman of business management consultancy Technopak Advisors, said, “A strong performance by Trent positions it as a standout, especially when compared to the underwhelming performance of its direct and indirect competitors.”
Three analysts surveyed by LSEG anticipate that Trent, the operator of Westside department stores, will experience a notable 46.1% surge in revenue to 31.90 billion rupees for the March quarter. This growth would signify the 11th consecutive quarter of surpassing expectations.
HDFC Securities remarked earlier this month that the organic growth in apparel and footwear, excluding Trent, continues to show a subdued trend.
In recent quarters, other apparel retailers such as Shoppers Stop and Tommy Hilfiger-licensee Arvind Fashions have reported modest growth compared to Trent, which introduced Zudio in 2016.
As of December 31, Zudio has expanded its presence with 460 stores across India, contributing to Trent’s total store count of 715.
In contrast, Shoppers Stop operated 105 department stores, Aditya Birla Fashion and Retail, the owner of Pantaloons, managed 4,753 stores, and V-Mart Retail, the operator of Unlimited, had 454 stores.
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According to Singhal from Technopak, Trent’s competitors have attempted various formats instead of maintaining a clear focus, whereas Zudio is adopting a more gradual approach, first establishing itself in clothing before venturing into footwear.
Analysts anticipate that the introduction of new stores by Reliance Industries and Aditya Birla offering affordable apparel will not impact Trent’s growth trajectory.
Axis Securities analyst Preeyam Tolia mentioned that Trent is poised to maintain robust double-digit growth due to its expansion strategies, with newer players expected to capture market share from independent stores, which constitute the majority of Indian apparel sales.
