MUMBAI: Indian fast-fashion retailer Trent plans to open more stores in smaller cities and towns in the world’s most-populous country, betting on demand growth outside the key metro markets, according to remarks by a top executive on Monday.
The Tata group firm, which runs youth-focused fashion chains Zudio and Westside, added more than 100 stores in the nine months to December, taking the tally to over 1,100. Analysts say expansion will drive Trent’s near-term earnings growth.
“A substantial portion now, maybe about two-thirds of the stores we are increasingly opening, are in new towns, new cities, new micro-markets within the periphery of cities,” P. Venkatesalu, managing director at Trent, told reporters at an industry event in Mumbai.
Venkatesalu did not specify the number of stores or cities. In recent quarters, Trent has entered towns in the southern state of Kerala, expanding its footprint to 274 cities.
More than 75% of Zudio stores opened in the nine months ended December were outside metropolitan areas, per a company presentation.
Indian consumer goods makers and retailers are increasingly betting on growth in the smaller cities to cash in on a growing middle class and as recent tax reductions have boosted demand.
Trent is increasingly relying on artificial intelligence tools and third-party data, including store density by brand and digital transaction levels, to identify locations for new outlets, Venkatesalu said.
The company is also scaling the use of automation and analytics across product, supply chain and store operations to improve efficiency as it expands, he said, without providing further details.
