Trent’s Market Moves: A Closer Look at the Tata Retail Arm

A decade ago, Trent was a quiet player in Tata Group’s vast portfolio, overshadowed by giants like TCS and Tata Motors.

Today, it is one of India’s fastest-growing retail empires, reshaping how the country shops for fashion.

But what changed?

Trent’s magic lies in two key brands - Westside and Zudio.

A single-format retailer known for Westside, it quietly built its base, brick by brick, with about 7 stores opening a year for nearly two decades.

Westside serves urban shoppers looking for quality apparel, while Zudio targets younger, price-conscious buyers in smaller cities.

This dual approach has worked remarkably well. Together, they now command 99% of Trent's apparel revenue, with Zudio alone contributing 49%.

Zudio's rise has been nothing short of explosive.

From a single Zudio store in 2018 to 760+ by 2025, the brand expanded at a blistering 57% CAGR, adding 132 stores in just the last quarter of FY25.

Unlike many competitors, Trent owns and operates all its stores directly rather than using franchises.

The financial turnaround has been impressive and mirrors this operational success.

In 2021, Trent was losing money.

Since then, revenue rose from ₹2,785 crore in FY21 to ₹17,135 crore in FY25 - a 515% surge, while the company flipped from a ₹109 crore net loss to a ₹1,447 crore profit.

Investors have taken notice as Trent's shares delivered 988% returns over five years, pushing its market cap beyond ₹1.8 lakh crore.

At a P/E of 118, the market is betting heavily on Trent's future - a valuation that assumes today's prices will look cheap in hindsight.

Trent's success stems from a series of strategic decisions that created a unique position in India's crowded retail market.

By focusing exclusively on its own private labels instead of carrying outside brands, the company maintained tighter control over quality, pricing, and inventory.

This integration allowed for rapid inventory turnover, with fresh styles hitting Zudio's shelves every few weeks - a tactic that keeps fashion-conscious shoppers returning frequently.

The brand's expansion strategy deliberately targeted smaller cities where real estate costs are significantly lower than metropolitan areas, enabling faster breakeven on new locations.

With revenue per square foot at ₹16,300 - 2x the industry average - the brand thrives on low price points (under ₹1,000), rapid inventory turnover (new styles every 3-4 weeks), and strategic Tier 2/3 locations where real estate costs are lower.

This lean model allows for 35-40% margins despite the aggressive pricing.

The approach has proven particularly effective for Zudio, whose under-1000-rupee price points and frequent merchandise updates have made it a favourite among younger shoppers in emerging cities.

Backed by the Tata Group, which owns 37% of Trent, the company benefits from deep expertise, strong funding, and cross-brand opportunities.

This support has been crucial in Trent’s rapid expansion and bold experiments, like its new beauty brand MISBU and premium label Samoh.

So, what’s next?

Trent isn’t stopping.

It’s pushing deeper into smaller towns, testing new categories, and even taking Zudio overseas with its first store in Dubai.

The question isn’t whether Trent can keep growing - it’s how big it can get.