The company says that elevated rental costs, delays in delivery timelines by developers are posing challenges to the execution of its expansion strategy
Tata Group retail firm Trent has said that limited availability of quality retail real estate, elevated rental costs and delays in delivery timelines by developers are posing structural challenges to the execution of its expansion strategy.
The operator of Zudio and Westside said that intensifying competition, growing attractiveness of the sector and rapid technological innovation further heighten market complexity. In its annual report, the company added that curating retail spaces, assortments and displays across diverse micro-markets and demographic segments adds executional challenges.
The company noted that rapid growth also introduces scalability risks across sourcing and supply chain capabilities. Trent added that its ongoing efforts to spot emerging fashion trends are reinforced by strong in-house design capabilities, supported by design studios in India and Spain, ensuring a refreshed and relevant product portfolio.
“Space management algorithms are calibrated to reflect regional and local variations, enhancing relevance and productivity across markets. Navigating through regional restrictions and adapting through quick and effective responses has helped us build long-term resilience and deliver sustained growth,” the company highlighted.
The company acknowledged that the ability to rapidly adopt and deploy evolving generative artificial intelligence and machine learning solutions is becoming a critical determinant of strategic agility and operational effectiveness.
Business Performance
Marking a healthy improvement in its performance, Trent has posted a consolidated net profit of Rs 413 crore in the fourth quarter of the financial year 2026 (Q4FY24), marking an uptick of 33 per cent YoY.
The financial results of the company revealed that the revenue from operations also rose to Rs 5,027.99 crore in Q4FY26. For the full financial year (FY26), the company’s net profit stood at Rs 1,741 crore, an uptick of 13 per cent YoY. The consolidated revenue from operations in FY26 stood at Rs 20,074.21 crore, up 17 per cent.
“We remain encouraged by the traction that our own brand propositions are witnessing across micro markets. Own brands now contribute to 73 per cent of Star’s revenues and remain the core differentiating proposition of the brand,” P Venkatesalu, Managing Director, Trent, said in the report.
The company’s food and grocery business, Star consists of 84 stores including the addition of 12 stores and closure of 6 stores during the year ended 31 March 2026. The company is pursuing multiple interventions including on the technology front aimed at driving differentiation and convenience of its customer proposition.
