The Tata Group's Trent Ltd. is implementing an aggressive expansion strategy for its premium clothing brand Westside, targeting 100 new stores annually to reinvigorate growth. According to reports from Business Standard, CEO Shailina Parti stated the company has been opening 10 to 15 stores each year and is now ready for the ambitious jump to 100 stores annually. The brand currently operates 300 stores at the end of its most recent fiscal year and is focusing on expansion in northeastern states while building out existing networks in top cities including Delhi, Bengaluru and Hyderabad. As reported by Moneycontrol, the strategy focuses on giving fashion spin and desirability for impulsive shopping experiences, with Parti emphasizing the company's readiness to accelerate much faster.
The expansion comes as Trent faces pressure for Westside to compensate for challenges at its bigger fashion chain Zudio, which focuses on lower-priced trendy offerings and faces slowing revenue growth amid fierce competition from conglomerates including Reliance Industries Ltd. and Aditya Birla Group. As reported by Business Standard, consumer demand has been shaky due to rising inflation and retail space availability limits. The company's shares have remained flat this year and are down 48% from their peak two years ago, with concerns over slowing growth at Zudio weighing on investor sentiment. Trent noted in its April investor presentation that consumers are spending with caution due to continuing macro uncertainties and potential increase in cost of living.
The Trent unit is implementing significant technology improvements to enhance operations and design capabilities. According to Business Standard, a new AI software suite has boosted productivity of approximately 50 in-house designers, helping them generate 400 to 500 designs weekly - up from an average of 50 previously. The company is also targeting to halve production lead time for trendy items down to just 30 days. CEO Parti emphasized the strategy focuses on giving fashion spin and desirability for impulsive shopping experiences, with the company seeking to expand AI use in supply chain, warehouse organization and product design to make operations faster.
As reported by Business Standard, Trent's board approved raising ₹25 billion ($260 million) earlier this year, with most funds allocated for retail footprint expansion. The company aims to increase Westside's e-commerce share of total revenue to 10%, up from approximately 6% in the quarter ended March 31. Some analysts view Westside as the next growth driver, with Bernstein analysts noting the brand's impressive store design overhaul and potential to emerge as the benchmark department store format in India. According to Moneycontrol, some of the funds will be earmarked for Westside's online business, including international operations.
Under Chairman Noel Tata's leadership, Trent has evolved from a modest retailer into one of India's most valuable consumer businesses, with Westside and Zudio driving growth as revenue crossed ₹20,000 crore and profits surged. According to Moneycontrol, Trent's shares rose almost 3% on Monday in Mumbai while the benchmark NSE Nifty 50 slipped 0.4%, after declining in the preceding nine trading sessions. The company is also rapidly increasing its store count domestically and has recently forayed into the UAE market, aligning with Trent's ambition to build Indian brands with international appeal. Maya Tata is set to spearhead Westside's e-commerce marketing as the fashion retailer gears up for aggressive global expansion.
