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Mumbai: Trent Ltd’s value apparel format Zudio opened a record 203 new stores during fiscal 2024, while entering 46 new cities during the year taking the total number of stores to 545, the retailer said.
“During the year, Zudio added 203 new stores to its portfolio and consolidated 10 stores. With a store footprint of 10,000 sq ft, the concept affords expansion across numerous micro-markets,” ,” Trent said in its annual report for the year FY24.
“The capital employed for a new Zudio store is in the region of ₹3 crore to ₹4 crore including cap-ex, deposits and inventory,” the annual report said.
In FY24, Zudio entered 46 cities and added more presence in 48 cities.
Also read: Fashion forward: Trent captivates with zesty Zudio expansion
Zudio grew its footprint by 203 stores in the last financial year and is now more accessible than ever before with a growing density of presence in multiple micro markets, the retailer said.
For the full year, the company that operates a portfolio of retail formats in India such as Westside, Zara and Star supermarket in India reported consolidated revenues of ₹12,375.11 crore. It recorded a profit of ₹1,477.46 crore for the 12 months ended 31 March 2024. The company operates 811 stores across 178 cities.
Zudio operates in the value segment and focusses on younger shoppers. As of March 2024, Zudio had 545 stores across 164 cities, including stores co-located with Star supermarket.
Following the success of Trent’s Zudio, the value retail segment has seen entries of national retailers such as Yousta (Reliance Retail), Style-Up (ABFRL), and InTune (Shoppers Stop), analysts at Motilal Oswal Financial Services Ltd said in a report last year.
Also read: Zudio’s success spurs competition in value-fashion market
India’s value retail market, excluding food and grocery, is likely to surge to $170 billion by 2026 from $111 billion in FY23, as per a report by Wazir Advisors. This segment is set to grow at a compound annual growth rate (CAGR) of 15% between 2023 and 2026, surpassing the overall retail sector’s expected 10% CAGR, which is projected to reach $1,219 billion by FY26.
Apparel leads the value retail category, followed by furniture, beauty and personal care, and footwear.
“Pitched at a younger audience, we recognize it is critical to be fashion forward and closely synchronized with evolving trends. The emphasis is on minimizing lead times and landing fresh collections in stores as quickly as possible. Merchandise is almost entirely sourced from within India as a matter of choice, affording access, speed & flexibility,” Trent said of Zudio.
Meanwhile, the company’s Westside brand had 232 stores across 91 cities as of March 2024.
“Both formats play in the ‘value’ space although at different levels. Both are completely integrated at the back-end yet completely differentiated at the front. While Zudio has seen rapid store additions, management is equally excited about Westside,” analysts at Jefferies said in a note on Trent Ltd.
“Interestingly, there are cases where both formats are next to each other and management does not really worry about cannibalisation. Westside focuses on online while Zudio does not. The format (Zudio) has changed dramatically over the last three years and that would be the case even going ahead. Zudio today has a smaller range versus what it was a few years back and it continues to evolve,” analysts at Jefferies added.
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Published: 21 May 2024, 01:52 PM IST
