Growth challenge for Trent’s overseas plans

Trent, the Tata Group’s retail play, is yet to finalise its plans to go abroad though it had said it would two years ago.

“We are still exploring plans (to open stores in West Asia and Africa),” said an executive. “The market there is facing a lot of challenges such as low same-store sales growth. We want to have the right partner and right plan before we enter.” Same-store sales growth means growth from stores operational for a year or more.

Trent did not reply to an email about the expansion.

Trent had two years ago announced plans to go global, especially West Asia and Africa. The venture was expected to cater to the diaspora in countries such as Oman and Qatar in West Asia and Nigeria in West Africa.

The retailer confirmed it was still planning to open shops outside India. “Taking Trent overseas is on our radar,” said chairman Noel Tata, while addressing shareholders at the annual general meet in August 2015. “Philip Auld, the managing director, is working on the opportunities for us. If not this year, we should definitely go international by next year. There are, however, transaction costs, taxes and exchange rates which have to be considered.”

Last year, Tata said, Trent had assigned a capital outlay of ~150 crore to expand to West Asia and launch its own massmarket apparel stores, apart from adding about 50 stores across formats such as Westside and Star Bazaar. “We have already identified the countries and partners and will definitely have international stores in the coming year. To start with, we will have two-three stores. Depending on the response, we will decide how many more stores we want to have in the international markets.”