Trent set to take advantage of trends in retail sector

K. ARAVIND

Trent is a retail company of the Tata Group. Trent began operations in 1998. Westside, one of the leading retail chains in India, and Landmark, a bookstore chain, operate under Trent. Westside has 143 retail stores in 81 cities. The company also operates a hypermarket called Showing results for Star Bazaar in eight cities.
One of the fastest growing retail sector in the world is in India. It is growing at an annual rate of 13 per cent. India is number one in the world in terms of per capita retail store availability. Companies such as Reliance Retail are realising this potential and are investing heavily in the sector.

The retail business in India is growing not only in major cities and metros. The retail industry is expanding rapidly in both Tier-1 and Tier-2 cities. Factors that lead to the growth of the organised retail market include healthy economic growth, increased youth representation, growth in disposable income, urbanisation and changes in consumer tastes and preferences.

The government has introduced reforms to attract foreign investment in the retail industry. At present, 51 per cent foreign investment is allowed in the multi-brand retail sector and 100 per cent in the Single brand retail sector. It is hoped that this will lead to significant investment growth in the sector.

Improvements in economic activity after the lockdown will improve Trent’s business. The company is ready to take advantage of the vast opportunities in this area. The company is also performing well. The company had posted a net loss of Rs.184 crore in the April-June quarter. At the same time, the company’s business is expected to improve in the coming quarters.

Trent is one of the stocks that stands out among the mid-sized companies. In the long run, these equity has the potential to offer great returns. In recent years, Trent has seen a performance that stands apart from the stock index. The stock gained more than 100 per cent from its March low.