Latest news with #Zudio
Time of India
3 hours ago
- Business
- Time of India
HSBC starts coverage on Trent with buy, sees 19% upside on Zudio growth
HSBC Global Research has initiated coverage on Trent Ltd with a 'buy' rating and a target price of Rs 6,700, implying a nearly 19% upside from Friday's close of Rs 5,951.85. The brokerage cited strong growth prospects led by Zudio's rapid scale-up, a robust execution track record, and compelling optionalities across the company's retail portfolio. Shares of Trent closed 4% on Friday. HSBC said Trent, part of the Tata Group, has emerged as one of the most dynamic plays in Indian retail, led by the 'strong growth on the back of Zudio scale-up.' While Westside continues to cater to mid-to-premium segments with a strong focus on women's wear, the brokerage noted that 'Zudio offers fast fashion at affordable prices' and is now 'the largest contributor to Trent's revenues.' Valuing Trent on a sum-of-the-parts basis, HSBC has assigned the standalone business, including Zudio, Westside, and other smaller formats like Utsa, Samoh and Misbu, an industry-leading price-to-earnings multiple of 75x on June FY27 estimated earnings. 'While this looks expensive, on a PEG basis, it comes to c.2.4x (vs 3x for Vishal Mega Mart and 4.7x for Page Industries) in spite of Trent's higher growth, profitability and RoCE profile,' the brokerage said, adding that this is the highest multiple among discretionary stocks under its coverage, excluding Nykaa. The valuation also incorporates Trent's 50:50 joint venture with Tesco for its hypermarket chain Star, which has been valued at 4x EV/sales, a 20% discount to DMart's historical five-year average. Zara India, run through a joint venture with Inditex, is valued based on the August 2024 share buyback by the Spanish parent. Other businesses have been valued at 2x EV/sales. HSBC said the blended valuation reflects both the company's near-term growth potential — it expects about 25% revenue CAGR over FY25–28, and the longer-term opportunity to gain scale in underpenetrated segments. HSBC flagged emerging optionalities such as the Zudio Beauty vertical as further levers for growth, stating, 'we like the optionalities at play in Trent,' and noted that Trent's improving profitability since FY23 makes historical PE ratios less relevant for current valuations. Live Events However, the brokerage also highlighted risks, including rising competition in the value fast fashion space that could disrupt network rollout and pressure margins. Weak consumer spending could weigh on growth at Westside and Zudio, while newer formats may fail to scale. 'Inability to drive or identify latest fashion trends' was also flagged as a downside risk. Trent shares have gained 13.8% in the past month but are still down 16% over six months. Over the last year, the stock is up 11%. Technically, it remains below most key moving averages, including the 5-day, 10-day, 20-day, 50-day, and 200-day lines, with an RSI at 56 suggesting neutral momentum. Also read | HDB Financial IPO shocker: Price band 42% below unlisted market value
Economic Times
3 hours ago
- Business
- Economic Times
HSBC starts coverage on Trent with buy, sees 19% upside on Zudio growth
HSBC Global Research initiated coverage on Trent Ltd with a 'buy' rating and ₹6,700 target, citing Zudio's strong growth, robust execution, and a premium retail portfolio. The brokerage forecasts a 25% revenue CAGR over FY25–28 and values Trent on a SOTP basis. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads HSBC Global Research has initiated coverage on Trent Ltd with a 'buy' rating and a target price of Rs 6,700, implying a nearly 19% upside from Friday's close of Rs 5,951.85. The brokerage cited strong growth prospects led by Zudio's rapid scale-up, a robust execution track record, and compelling optionalities across the company's retail portfolio. Shares of Trent closed 4% on said Trent, part of the Tata Group, has emerged as one of the most dynamic plays in Indian retail, led by the 'strong growth on the back of Zudio scale-up.' While Westside continues to cater to mid-to-premium segments with a strong focus on women's wear, the brokerage noted that 'Zudio offers fast fashion at affordable prices' and is now 'the largest contributor to Trent's revenues.'Valuing Trent on a sum-of-the-parts basis, HSBC has assigned the standalone business, including Zudio, Westside, and other smaller formats like Utsa, Samoh and Misbu, an industry-leading price-to-earnings multiple of 75x on June FY27 estimated earnings. 'While this looks expensive, on a PEG basis, it comes to c.2.4x (vs 3x for Vishal Mega Mart and 4.7x for Page Industries) in spite of Trent's higher growth, profitability and RoCE profile,' the brokerage said, adding that this is the highest multiple among discretionary stocks under its coverage, excluding valuation also incorporates Trent's 50:50 joint venture with Tesco for its hypermarket chain Star, which has been valued at 4x EV/sales, a 20% discount to DMart's historical five-year average. Zara India, run through a joint venture with Inditex, is valued based on the August 2024 share buyback by the Spanish parent. Other businesses have been valued at 2x EV/sales. HSBC said the blended valuation reflects both the company's near-term growth potential — it expects about 25% revenue CAGR over FY25–28, and the longer-term opportunity to gain scale in underpenetrated flagged emerging optionalities such as the Zudio Beauty vertical as further levers for growth, stating, 'we like the optionalities at play in Trent,' and noted that Trent's improving profitability since FY23 makes historical PE ratios less relevant for current the brokerage also highlighted risks, including rising competition in the value fast fashion space that could disrupt network rollout and pressure margins. Weak consumer spending could weigh on growth at Westside and Zudio, while newer formats may fail to scale. 'Inability to drive or identify latest fashion trends' was also flagged as a downside shares have gained 13.8% in the past month but are still down 16% over six months. Over the last year, the stock is up 11%. Technically, it remains below most key moving averages, including the 5-day, 10-day, 20-day, 50-day, and 200-day lines, with an RSI at 56 suggesting neutral read | HDB Financial IPO shocker: Price band 42% below unlisted market value (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Fashion Value Chain
7 hours ago
- Business
- Fashion Value Chain
Strategic Location Analysis and Marketing Approaches for New Retail Standalone
Nagarbhavi EasyBuy Store Srinidhi Rajadurai PG Scholar, Master of Fashion Management, NIFT Daman Dr Rahul Kushwaha, Assistant Professor – FMS, National Institute of Fashion Technology, Daman Introduction The retail landscape is continuously evolving, prompting businesses to seek strategic locations that maximise customer reach and enhance brand visibility. This research focuses on the strategic location analysis and marketing approaches for the proposed Nargarbhavi EasyBuy Store, aiming to provide insights into the viability of establishing a new standalone store in Nagarbhavi. Nagarbhavi, a densely populated suburb in Bangalore, presents a great opportunity for retail expansion due to its growing middle-class population and increasing consumer spending power. Marketing strategies are essential for any brand as they encompass the plans and tactics employed to promote products or services to target audiences. These strategies not only help in attracting new customers but also play a crucial role in retaining existing ones by fostering brand loyalty and awareness. For EasyBuy, a brand known for its commitment to providing quality products at competitive prices, effective marketing strategies are vital. They ensure that the brand not only stands out in a crowded marketplace but also resonates with the local community, thereby driving foot traffic to the new store. Through this research, the aim is to provide valuable insights into the strategic planning of retail operations, ultimately enhancing the competitive edge of the EasyBuy Store in Nagarbhavi within a rapidly changing retail environment. Objectives To assess the demographic profile and purchasing behaviour of residents in Nagarbhavi. To conduct a competitive analysis and identify EasyBuy's market positioning potential. To recommend localised marketing strategies to maximise store visibility, footfall, and conversion. Literature Review The research paper on a case study on Zudio by B Govil examines brand awareness, focusing on Zudio, a retail clothing brand. Which aimed to investigate Zudio's strategies to create and maintain brand awareness, along with their effectiveness. Respondents view Zudio products positively, linking their quality to marketing promises, with advertisements and social media playing a significant role in shaping consumer preferences and choices. Zudio's marketing and celebrity endorsements are influential, and its loyalty programs encourage repeat purchases. The study offers valuable insights for marketing professionals and helps understand brand awareness dynamics in the fast-fashion industry, guiding future strategies for Zudio and similar businesses. Karta N & Dhita P describe how the digital world has made it complex to drive marketing strategies for a brand due to the impact of Generation Z, a significant consumer group born between the mid-1990s and the early 2010s. This research paper aims to analyse Generation Z's consumer preferences and effective marketing strategies for building sustainable relationships with them. It uncovers recurring patterns, emerging trends, and socio-cultural influences shaping Generation Z's consumer behaviour, as well as their shift towards experiences over physical products, and their preference for brands prioritising social values, environmental concerns, and sustainability. The insights from this research are expected to provide valuable guidance for companies looking to engage and resonate with Generation Z and remain competitive in the consumer market. Research Methodology The study combined both descriptive and exploratory methodologies. The descriptive aspect focused on evaluating the potential of the Nagarbhavi location through the analysis of customer accessibility, demographic profiles, and market demand, while the exploratory aspect sought to gain insights into local market trends, customer preferences, and the competitive landscape. Primary data was collected from residents of Nagarbhavi, including students and staff from nearby colleges and schools. A total of 180 people were approached, with 100 responses collected, and after filtering for accuracy and completeness, 87 valid responses were used in the analysis. Convenience sampling was utilised for participant selection. Additionally, interviews were conducted with the Business Development team to understand the site selection criteria and strategic planning for new stores. Secondary data was gathered through an on-ground catchment and competition study in Nagarbhavi, analysing key competitors such as Zudio, Style Union, and Trends, along with their product offerings, pricing, and promotional strategies. A SWOT analysis of these competitors was conducted, and historical performance data from previous EasyBuy locations was reviewed with input from the Business Development and Marketing teams. Geographic and demographic analysis was also performed using Google Maps to study the 3 km radius surrounding the proposed store, with supplementary data collected from online sources on population density, age distribution, and income levels. Data analysis was conducted using SPSS and Excel. SPSS was utilised to identify correlations between key variables related to customer preferences, while cross-tabulation and bar graphs were employed to examine purchase behaviours segmented by age and average family income. This comprehensive analysis of customer demographics and purchasing patterns provided critical insights into the viability and potential success of the proposed EasyBuy store in Nagarbhavi. About Nagarbhavi Nagarbhavi is strategically located between Mysore Road and Magadi Road in West Bangalore. It is well-serviced by public infrastructure and has a mix of educational, residential, and commercial establishments. Known for its cultural vibrancy and middle-class population, Nagarbhavi is ideal for a value fashion brand like EasyBuy. Demographics Snapshot Demographic Category Details Age Group Distribution 0–14 years: 30% 15–24 years: 25% 25–54 years: 35% 55+ years: 10% Income Levels Low: 20% Middle: 60% High: 20% Gender Distribution Male: 52% Female: 48% Languages Spoken Kannada, Telugu, English, Hindi, Tulu, Konkani Competitive Landscape Competitors within 750 Meters Brand Distance from EasyBuy Store Layout Style Union 250 meters Ground + 3 floors Trends 270 meters Ground + 2 floors Zudio 300 meters Ground floor Avantra 450 meters Ground + 2 floors Pantaloons 500 meters Ground + 3 floors There are also non-competing brands nearby like Croma, Jockey, W, Go Colors, and Puma. Their presence helps in clustering benefits, boosting overall footfall. Catchment Study of Nagarbhavi (2020 Data) Catchment Study Of Nagarbhavi In the catchment study of Nagarbhavi, conducted through site visits and secondary information collected online, the following key observations were made in 2020: The total population was 123,649, with 65,260 males and 58,389 females. The 25-29 years age group appeared to be the largest segment of the population, followed by the 20-24 years age group, which also represented a significant portion. The 65 years and above category appeared to be the smallest segment, alongside other smaller segments, including the 60-64 years, 55-59 years, and 50-54 years age groups. In most age groups, the male population slightly outnumbered the female population, but there were a few exceptions where the female population appeared to be slightly higher. The data above shows various establishments within a 3 km radius of Nagarbhavi as recorded during a my site visit & with the help of Google Maps. These establishments have been categorised into different sectors such as retail, banking, entertainment, healthcare, etc., to provide a better understanding of the Nagarbhavi neighbourhood. The area boasts a significant number of fashion retail stores (35) and dining places (50), indicating a potential market for a variety of consumer goods and food services. The presence of multiple shopping chains, malls, and departmental stores suggests a well-developed commercial infrastructure. The availability of banks, ATMs, and fuel stations further supports this. A considerable number of dining places, multiplexes, clubs, parks, and gyms indicate a focus on leisure and entertainment. The area also caters to educational needs with colleges and schools, while healthcare services are provided through clinics and hospitals. EasyBuy Internal Insights Factor Insight from BD Team Catchment Analysis Family-centric & student-heavy area Relocation Strategy Moving from older Unlimited store to higher visibility zone Market Health Competitor stores lack modern appeal Customer Behaviour Preference for nearby, accessible retail stores Financial Viability Projected ROI meets EasyBuy's retail benchmarks Clustering Strategy Retail synergy due to proximity with non-competing brands Store Design Modern, open layout to differentiate from competitors SWOT Analysis Strengths Weaknesses High foot traffic due to nearby schools, colleges, and residences Style Union is next door and has strong brand equity Enhanced visibility with EasyBuy Totem signage Zudio and Pantaloons already have a market share Accessibility and convenience from 80 Feet Road Cluttered fashion retail market Opportunities Threats Offline shopping preference of locals Non-branded local markets offering cheaper options Proximity to leisure destinations Risk of customer churn without differentiated value Customer Survey Highlights Demographics of Respondents (n=87) Age Group Percentage Under 18 4% 18–24 23% 25–34 41% 35–44 31% 45+ 1% Gender Percentage Female 74% Male 24% Prefer not to say 2% Interpretation In the survey, 87 people participated, and the findings and analysis are based on the collected responses. The age distribution of respondents was as follows: 23% were aged 18 to 24, 41% were aged 25 to 34, 31% were aged 35 to 44, 1% were over 45, and 4% were under 18. Regarding gender, 74% of the respondents were female, 24% were male, and 2% preferred not to disclose their gender. Frequently Visited Stores vs Income Group Store ₹2L–₹5L ₹5L–₹10L ₹10L+ Zudio High Very High Moderate Style Union Moderate High High EasyBuy High High Moderate Pantaloons Moderate Moderate Moderate Max, Intune Low Low Low Interpretation Zudio has a strong presence across all income groups, with a significant number of customers in the ₹5,00,000 to ₹10,00,000 income bracket. Style Union also has a presence across income groups but shows a stronger inclination towards the higher income bracket (₹5,00,000 to ₹10,00,000 and more than ₹10,00,000). EasyBuy, Max, Trends, and Pantaloons seem to have a more balanced customer base across income groups, with a slightly higher concentration in the middle income brackets (₹2,00,000 to ₹10,00,000). On the other hand, Intune, Styleup, Local Shop, and Jack n Jones have a very limited customer base and don't show a clear pattern in terms of income distribution. When asked about their preferences, 36.8% of the respondents valued product quality the most, followed by 31% for affordable prices and 23% for a wide range of products. Trendy styles, good customer service, attractive promotions, and discounts received lower preferences. Brand Awareness & Marketing Influence Metric Result EasyBuy Brand Awareness 75.9% aware Have Shopped at EasyBuy 39.1% Discounts & Offers as Shopping Driver 64% respondents Social Media Campaigns & Contests 68% influenced Influencer Promotions 59% influenced In-store Visual Appeal 64.4% influenced SMS Notifications 44.8% effective INTERPRETATION Out of 87 respondents, 75.9% are aware of the brand EasyBuy, while 24.1% are not familiar with it. Among those who are aware of the brand, 39.1% have shopped at EasyBuy before, indicating that there is a significant portion of respondents who are familiar with the brand but haven't made a purchase yet. This suggests potential for increasing the customer base by converting those aware into actual customers. Marketing Strategies Factors Which Encourage More Interpretation Discounts and offers – A Significant majority, 64%, indicated that the presence of discounts and offers would serve as a strong incentive to visit the store. This suggests that nearly two-thirds of the participants are highly motivated by promotional activities when deciding whether to shop in-store. Special interactive events – Are highly effective in attracting customers to the store, as suggested by 54% of respondents. These events can significantly increase customer footfall, leading to enhanced engagement and sales opportunities. Influencer appearance and promotions & social media campaigns and contest – Out of 87 respondents, 51 (59%) are influenced by influencer promotions, while 59 (68%) are swayed by social media campaigns and contests becoming the second most popular marketing strategies that respondents prefer and encourages them to visit a new fashion store. This indicates that influencer promotions effectively build trust and credibility, whereas social media campaigns and contests are highly engaging and drive immediate participation. Attractive window display and in-store decorations – these two elements play a crucial role in drawing customers to a new store. This is supported by the fact that 56 respondents, constituting approximately 64.4% of participants, indicated that these elements would significantly encourage them to visit. Short Message Service (SMS) Notifications – Out of 87 participants, 39 believe that SMS notifications about store openings would encourage them to visit the store. In contrast, 19 participants are neutral on this matter, while 28 feel that SMS notifications are unlikely to influence their decision to visit. Challenges And Solutions Throughout the project, I faced several challenges. Finding a focus group that accurately represents EasyBuy's target audience was initially difficult, but involving a group of 15-20 interns within the target age range and with diverse backgrounds proved effective. Coordinating with multiple department personnel and ensuring timely approvals and project completion by Friday was demanding. To address this, I maintained an organised checklist of all processes and conducted regular follow-ups. Ensuring clear and consistent communication across various departments was also challenging. Using a detailed checklist and regular follow-ups helped keep the process organised and on track. Coordinating data collection from multiple sources and ensuring accuracy and completeness was another significant challenge. Implementing structured communication and systematic tracking streamlined data collection and presentation. Finding And Feedback The coordination among store managers could have been better anticipated to attract more participants. In addition, errors in saving participant information by the store after the gameplay resulted in the loss of half the data, leading to more gameplay than captured leads. The discount voucher offered to all the participants is a positive step. It could incentivise people to participate in future games and potentially convert them into customers of the EasyBuy store. References Your one-stop clothing store for men, Women & Kids. Easybuy. (2024, July 30). Brand Awareness: A Case Study on Zudio. ResearchGate, 2024, Gen-Z Marketing Strategies: Understanding Consumer Preferences and Building Sustainable Relationships.' ResearchGate , 2024, . About Landmark Group, files/About%20Landmark%20Group_2.pdf. About Us. Landmark Group, Landmark Group, Easybuy: Revolutionising Neo India's Fashion Retail. Images Retail, Magzter, Accessed 19 Aug. 2024. EasyBuy India Posts. LinkedIn, EasyBuy: Acing India's Clothing Market. TopPan Digital, Khan, M. N., & Khan, M. A. 'Role of Marketing Strategies to Generation Z in Emerging Markets.' ResearchGate, 2023, DOI:10.51659/josi.21.166[ Kumar, A., & Sharma, R. 'Measuring Marketing Strategies Used by Generation Z in Indian Market.' 2023, pp. 1-10, ( Nagarbhavi Overview Report.'GeoIQ, 2020, ( HSBC Staff Annual Party 2020, ( Experiential Marketing in the Fashion Industry.'Marketing Life, ( Fashion Brands Using Experiential Marketing for Studio, ( Fashion Experiential Marketing Trends Changing Retail. Cercone Brown, Experiential Fashion: 20 Examples of Brands Using Unique Hunter, Hernandez, J. C. 'Influencer Marketing and its Impact on the Fashion Industry.' Lund University, 2022,
Business Upturn
13 hours ago
- Business
- Business Upturn
HSBC bullish on Trent as Zudio momentum and Westside revival drive strong outlook, initiates Buy call with target price of Rs 6,700
By Markets Desk Published on June 20, 2025, 07:43 IST HSBC has initiated coverage on Trent Ltd. with a 'Buy' rating and a target price of ₹6,700, calling it one of the most compelling stories in the Indian retail space driven by Zudio's rapid expansion and Westside's transformation. The brokerage forecasts ~200 new Zudio stores per year over FY25–28, and sees minimal competitive threat in the affordable fashion segment, thanks to Zudio's tight supply chain, format consistency, and pricing power. HSBC also believes Zudio Beauty—a new vertical under the brand—could be the next major value driver. In addition, Trent is revamping its Westside format, aiming for better customer experience, store aesthetics, and private label engagement to drive same-store sales growth (SSSG). These efforts are expected to fortify margins and ensure brand relevance. Although the stock is trading at an optically expensive 75x PE, HSBC argues that the valuation is justified on a PEG basis, which stands at 2.4x compared to 3x for Vishal Mega Mart and 4.7x for Page Industries. Given Trent's superior earnings growth, profitability, and RoCE profile, HSBC sees meaningful upside potential. The brokerage notes that Trent's multi-format expansion strategy, disciplined cost control, and brand stickiness put it in a unique position to deliver high-quality growth over the next several years. Ahmedabad Plane Crash Markets Desk at
Mint
a day ago
- Business
- Mint
Trent sticks to the long-term goal of growing 25% every year
Tata group-backed Trent Ltd remains committed to the long-term target of growing 25% annually, focusing on brands such as its value fashion format Zudio, opening stores in micro-markets, and expansion into new categories, the retailer told analysts at its investor day. Trent aims to remain relevant in the fashion business by using Zudio as its primary growth engine, according to reports by multiple brokerages. It seeks to operate in categories with repeat consumer purchases instead of chasing metrics like like-for-like (LFL) sales growth, store count growth, and total addressable market (TAM), analysts at Nuvama Institutional Equities said in a report released on Thursday following Trent's 18 June investor day meet. 'There is no point driving LFL via discounts or driving price-led growth at the cost of volumes (and losing relevance) or chasing TAM by adding more and more categories. Trent operates under a distinct set of constraints compared to other brands," the report said. It added that the retailer's commitment to no discounting, maximizing full-price sales, avoiding advertising, and exclusively using private labels significantly narrows its strategic options. Trent is aggressively pursuing growth, aligning with Noel Tata's vision, which is to grow the retailer 10x its current size. Noel serves as the chairman of both Trent and Tata Trusts. 'Two years ago, I had envisioned that Trent would one day be 10 times bigger. Since then, the revenue run rate has doubled. The headroom for growth remains enormous, and I am confident that we will reach this milestone in the not-too-distant future,' he said in the annual letter to its shareholders earlier this month. Trent reported revenues of ₹ 17,134.6 crore in 2024-25, up 38.4% year-on-year. Profit for the fiscal year grew 3.85% on-year to ₹ 1,534.41 crore. Trent operates 1,091 stores as of 31 March 2025. Zudio, its fast-growing value fashion chain, led the expansion with 244 new outlets, increasing its presence to 765 stores across 235 cities, including its first two overseas stores in 2024-25. The brand, launched in 2016, crossed a billion in sales after nearly a decade of operations, according to the company's annual filing. 'Zudio has the potential to match Westside's profitability profile over the medium term, given improving unit economics and scale benefits,' Nuvama said in its post-earnings call report. Westside, the company's lifestyle and apparel brand, ended the year with 248 stores. Trent's apparel division, which includes brands such as Zudio and Westside, contributed about 80% of the company's overall revenue. The Tata-backed company is aiming for significant growth in this segment without specifying a timeline. The stock has rallied by over 700% over the last five years on BSE. India's overall retail market is projected to grow to $2 trillion within the next decade, up from $820 billion in 2023, according to estimates by Boston Consulting Group (BCG). In fashion and apparel, Trent's formats compete with the likes of Max Fashion (Landmark Group), V-Mart Retail, Reliance Retail's Azorte, Aditya Birla Fashion and Retail Ltd's Pantaloons, and Style Up, among others. Trent largely operates in the value-mid priced segment in apparel, footwear, and home goods. It also operates Zara (fashion retail) and Star (food and grocery chain) stores in India. Despite a six-fold jump in revenues during FY19-25, management indicated that Trent's share in the country's fashion and lifestyle retail industry remains in low single-digits, analysts at Motilal Oswal Financial Services said. However, the company believes there is still a 'long runway' for growth and aims to grow at 25% annually over the longer term through a multi-brand, cluster-based approach to increase its market share in key micro-markets, they added. It is looking to ramp up its presence in categories such as beauty through Zudio Beauty; it recently launched its range of lab-grown diamonds under the brand 'Pome'. 'We continue to like Trent for its robust footprint additions, strong double-digit growth, long runway for growth in Star (presence in just 10 cities), and potential scale-up of new categories,' they said. The brokerage reiterated a 'buy' rating on the stock while keeping its FY26-27 estimates unchanged. Meanwhile, Trent remains 'bullish' on the growth opportunity in the food and grocery segment via its Star format but will grow 'sensibly', focusing on the right economics and driving a greater share of its own brands. Star Bazaar operates via Trent Hypermarket Pvt. Ltd, a joint venture with British retailer Tesco PLC. Star Bazaar experienced a 25% on-year revenue growth during 2024-25, contributing approximately 15.75% of Trent's consolidated revenue. This is in contrast to its larger rival, Avenue Supermarts, which operates DMart. Avenue Supermarts generated ₹ 59,358 crore in revenue, with 57.7% coming from food, 20% from fast-moving consumer goods (FMCG), and 22.3% from general merchandise and apparel. These segments compete directly with Trent's value fashion and daily essentials offerings. Trent's push comes as DMart faces a slowdown in its food and FMCG segments, which together contribute about 77.4% of the company's overall revenue to rising competition from quick commerce players such as Swiggy, Zomato, and Zepto. DMart is in the midst of a leadership transition. In February 2026, Anshul Asawa, the designated chief executive, will succeed Neville Noronha. However, building scale in the Star Bazaar segment would be a 'long-term process', potentially spanning decades, said analysts at Nuvama. Meanwhile, the company emphasized its focus on prioritizing growth in India and on selling products that customers buy repeatedly. 'Unlike other retailers' obsession with volume, Trent's strategy is rooted in brand equity, customer experience, and staying relevant. The Indian market is a top priority, with most operations and the supply chain rooted domestically, with limited international presence (Zudio in Dubai),' analysts at Jefferies said in a separate report following the investor meet. Trent is a structural story on the growing organized apparel market in India, they added. However, expensive valuation keeps us on the sidelines. In the base case, Jefferies expects a compound annual growth rate of 35% in standalone sales over FY25-28E.
