About Trent and Its Retail Footprint

Trent Ltd, a prominent arm of the Tata Group, is a diversified retail company managing some of India’s most recognized fashion and lifestyle brands. Its flagship brands include Zudio, a value fashion brand, Westside, catering to the premium segment, and Star, focused on food and grocery retail. With over a thousand stores across India, Trent continues to expand its presence in both urban and emerging markets.

The company’s approach focuses on originating, incubating, and scaling new brands to create sustainable growth, rather than relying solely on existing portfolio players.

Trent’s Strategy to Launch a Brand Every Five Years

P. Venkatasalu, CEO of Trent, recently outlined the company’s ambitious growth strategy: incorporating one new brand into its portfolio every five years. This approach reflects Trent’s vision of not just being a single-brand company, but a platform capable of nurturing multiple billion-dollar brands.

Over the past five years, Trent has successfully added three new brands: Utsah, Samoh, and Burnt Toast. Alongside this, Zudio Beauty was expanded into a standalone format, diversifying Trent’s offerings and catering to a wider audience.

Burnt Toast: Targeting Gen Alpha

The newest addition, Burnt Toast, aims to capture the Gen Alpha market, focusing on consumers aged 15-25. Available initially in Mumbai, Bengaluru, and Surat, Trent envisions Burnt Toast following the growth trajectory of Zudio, potentially becoming the next billion-dollar brand.

Trent plans to expand the brand across India while continuing to optimize its existing store network.

Zudio: Trent’s Growth Engine

Zudio has emerged as a major contributor to Trent’s revenue, surpassing $1 billion in FY25. In the June quarter of FY26, Zudio and Westside together accounted for 82% of Trent’s total revenue of ₹4,883 crore, highlighting their significance within the company’s portfolio. Zudio alone had 766 stores, with Westside operating 248 stores and Star 77 outlets as of the same quarter.

Slowing Growth and Market Challenges

Despite strong brand additions, Trent has faced moderation in growth. Brokerages including Nuvama, Axis Securities, and Systematix have revised FY27 revenue estimates downward. Revenue in the June quarter of FY26 grew 19.8% year-on-year to ₹4,781 crore, a slowdown compared to the 57% surge in the same quarter last year. Same-store sales growth for fashion formats remained in low single digits, while Star reported no growth.

Expansion has also slowed, with only one net Zudio store added and no new Westside stores during the quarter, reflecting a cautious approach amidst market pressures.

Diversifying Revenue Streams

Trent’s approach of alternating brand launches with expansions of existing formats aims to diversify revenue streams and reduce dependency on any single brand. By adding niche brands like Utsah, Samoh, and Burnt Toast, Trent hopes to cater to different demographic and lifestyle segments, creating long-term value for investors and enhancing resilience against market fluctuations.

Future Expansion and Market Outlook

Looking forward, Trent plans to open about six new stores across India by the end of FY26. The strategy of careful geographic expansion, combined with its brand incubation model, positions the company to capitalize on evolving consumer trends, particularly in the youth and value fashion segments.

Investor Takeaway

Trent’s strategy of adding one new brand every five years demonstrates a long-term growth vision and a focus on brand building. While short-term revenue growth has moderated, the diversified portfolio, strong performance of Zudio, and launch of Burnt Toast targeting Gen Alpha indicate potential for sustained value creation. Investors should watch store expansion, same-store sales trends, and the adoption of new brands as key performance indicators in the coming quarters.

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About Trent Ltd

Trent Ltd, a Tata Group entity, operates in diversified retail including fashion, lifestyle, and food & grocery. Its strategy combines incubation of new brands with expansion of established formats like Zudio and Westside. The company emphasizes a platform model to scale billion-dollar brands, aiming for sustainable growth across demographic segments and geographies.