New Delhi: Noel Tata-led Trent is launching its value fashion brand Zudio in Dubai next month, the retailer’s maiden attempt to enter the overseas market to cash in on the large Indian diaspora. The first Zudio store in Dubai will be located in Silicon Oasis Mall.
The Zudio format now contributes more than a third to Trent‘s total revenue. compared to just 8% a few years ago.
“It’s a baby step and we are doing a pilot with one store. Depending on the response we get, we will open more stores in newer geographies,” said a senior Trent executive, who did not wish to be identified. Zudio operates with 7,000-10,000 sq ft stories while the company’s Westside stores range from 20,000-30,000 sq ft.
Trent reported a 50% surge in sales for 2023-24 to ₹12,375 crore and a nearly fourfold jump in net profit to ₹1,477 crore.
The company’s consolidated revenue has increased at a five-year compound annual growth rate of 45%.
As of June, the company has 228 Westside stores, 559 Zudio stores and 36 stores across other lifestyle concepts.
Zudio has now overtaken Westside in terms of area due to aggressive expansion.
According to a report by Motilal Oswal Financial Services, the value fashion segment is one of the largest and fastest-growing segments within the apparel market. Following the success of Trent’s Zudio, the segment has seen the entry of other national retailers such as Yousta (Reliance Retail), Style-Up (ABFRL) and InTune (Shoppers Stop).
Since its inception in 2016-17, Zudio has seen considerable expansion, and its success has been aided by an exclusive design portfolio and a low gross margin of 35-40%. This enables the company to achieve a high store productivity with a revenue per sq foot of ₹16,300, which is twice the industry average.
