Westside revs up plan for digital expansion
Fashion and decor retailer also plans to open 20-30 stores next fiscal year
Fashion-focused department store chain Westside is planning to open between 20 and 30 stores next fiscal year and ramp up e-commerce operations in the next 12 months, said a top executive. Westside, a part of Tata’s Trent Ltd, is on track to add 25 new stores in the current fiscal. “We are continuing store expansion at the same rate. We’ll open the same number of stores next year. We’d like to have more presence in north and north-east India,” said Shailina Parti, chief operating officer at Westside.
As of March 2023, Westside operated 214 stores across 90 cities. At the end of the December quarter, it operated 227 stores in 89 cities. Westside started its e-commerce arm in 2020-2021, which currently forms a small part of its business.
“So, 50% of our online sales come via the app. We did not really have an app that was working for us two years ago. Westside did not really have an online business two years ago, it was tiny. It's still small as a percentage of overall sales, sitting at 6-7% but that's where the opportunity is because we want to grow that to over 10% over the next few years,” Parti said.
“We are also conscious that the online market drives huge revenues, but it's always hard to drive profits (online). Our dotcom sales are profitable,” said Parti. It does not sell on any third-party marketplaces other than the group’s e-commerce platform Tata Cliq.
“Online growth in the last six months has come through our work on customer deliveries, website and app redesign, everything that's needed to drive digital commerce is being worked on. So, we should start seeing those benefits unfold in the next financial year,” said Parti, who joined Westside in May 2022. In FY23, Trent Ltd reported a revenue of ₹8,213 crore with a profit after tax of ₹555 crore. Trent operates multiple formats such as Zudio, apart from a supermarket concept operating under Star brand. Westside offers branded fashion apparel, footwear and accessories for women, men and children, along with a range of home furnishing and decor. The company also operates Zara stores in India via its joint venture Inditex Trent Retail India Pvt. Ltd. The retailer competes with Aditya Birla Fashion and Retail's Pantaloons, Shoppers Stop and Landmark Group’s Lifestyle.
Westside registered 49% like-for-like growth in sales in FY23, according to the company’s annual report. The retailer is working on new product ideas to drive sales of premium products in the apparel portfolio and expand its non-apparel category. “We’re looking at ensuring we have a balance across the portfolio of brands we offer. Increasingly, we’re seeing massive growth in premium products,” Parti said.