Opinion · Retail
Why Trent’s hinterland bet still outruns pure discounting
Zudio’s march past 1,000 stores and mid-single-digit like-for-like growth show density beats endless markdowns.
The Desk, Editorial··4 min read
Noel Tata exits as chairman on 11 November with the network already proving that value fashion works deepest when it follows catchment growth rather than only metro malls. Star grocery also delivered 22 percent revenue growth. Operating leverage is visible even with inflation still present.
A Zudio till in a Tier-3 town converts first-time branded apparel buyers who previously shopped unorganised or online only for festivals. That shopper returns for basics because the price ladder is clear and stock is fresh. Markdown pressure stays lower than at pure online flash-sale players.
Compelling reception in Tier-2 and Tier-3 gives conviction to double down on hinterlands.
The model squeezes regional value chains that lack Trent’s sourcing scale and helps fabric and garment suppliers who gain predictable volume. It also forces Reliance Trends and newer value formats to match speed of store openings rather than just depth of discount.
Watch the first half of FY28 store-addition guidance and any early read on festive like-for-like after the calendar shift. If hinterland productivity holds, Trent keeps compounding without needing to chase every coupon war.