Trent, led by Noel Tata, is set to open its first Zudio store in Dubai next month, marking the brand’s first step into the international market. The new store will be located in Silicon Oasis Mall, aiming to attract the large Indian community in the region.
Zudio, Trent’s value fashion brand, has grown significantly and now accounts for more than a third of the company’s total revenue, compared to just 8% a few years ago.
A senior executive from Trent mentioned that this is a “baby step,” with just one store as a test run. Depending on the response, Trent may open more stores in other international locations. Zudio stores are typically smaller, ranging from 7,000 to 10,000 square feet, while Westside stores are larger, between 20,000 to 30,000 square feet.
Trent recently reported a 50% increase in sales for 2023-24, reaching ₹12,375 crore, and a nearly fourfold increase in net profit to ₹1,477 crore. The company’s revenue has grown at an impressive annual rate of 45% over the past five years.
As of June, Trent operates 228 Westside stores, 559 Zudio stores, and 36 other lifestyle concept stores. Zudio’s rapid expansion has made it the company’s largest brand by store area.
According to a report by Motilal Oswal Financial Services, the value fashion segment, where Zudio competes, is one of the fastest-growing areas in the apparel market. Zudio’s success has inspired other major retailers like Reliance Retail, ABFRL, and Shoppers Stop to enter this segment.
Since launching in 2016-17, Zudio has expanded rapidly, benefiting from a unique design portfolio and low gross margins of 35-40%. This strategy has resulted in high store productivity, with revenue per square foot reaching ₹16,300, double the industry average.
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