Tata's Trent to push deeper into small town India to drive growth, top exec says

Trent Targets Smaller Towns for Next Growth Phase

Tata Group's retail arm, Trent, is shifting gears in its expansion strategy, focusing heavily on tier-3 and tier-4 cities to capture emerging demand in India's smaller urban pockets.

Managing Director P Venkatesalu recently shared that nearly two-thirds of the company's new store openings are now in these lesser-served markets, including new cities and micro-markets on the edges of larger urban areas.

This move comes as India's discretionary spending shows signs of rebounding after recent economic adjustments, particularly following GST reforms that initially boosted big-ticket purchases but are now paving the way for broader consumption recovery.

Trent, which operates popular brands like Westside and the fast-fashion chain Zudio, has already added over 100 stores in the nine months leading up to December, pushing its total network beyond 1,100 outlets across more than 270 cities.

Replicating Urban Success in Rural Edges

The company's approach mirrors the densification tactic it successfully employed in major metros just a few years ago, where clustering stores in high-potential micro-markets drove rapid growth.

Venkatesalu emphasized that while spending maturity in smaller towns lags behind big cities, the potential is immense, especially among younger shoppers who are already tuned into national fashion trends.

Zudio, in particular, is leading this charge, making up over 75% of recent openings with its affordable, trendy apparel that resonates with aspirational buyers in these areas.

By leveraging data and AI to pinpoint prime locations, Trent aims to build a strong presence before competition intensifies, turning these markets into profitable strongholds within the next few years.

This strategic pivot reflects a broader trend among organized retailers recognizing that India's growth story is increasingly playing out beyond the metros.

Young Consumers Driving the Shift

"We see that the young customer in those markets is super clued on to what trends are playing out. Having said that, I do think she will evolve more as she gets to experience more of these brands in her own micro markets. We're doing the same thing broadly speaking in tier three, four markets now as we did in metros five years ago."

Venkatesalu made these remarks on the sidelines of the Retail Leadership Summit in Mumbai, highlighting how exposure to organized retail is accelerating fashion adoption in smaller towns.

Despite short-term challenges from GST changes that favored electronics and travel over small-ticket items like clothing, the executive remains optimistic about long-term gains as consumer habits stabilize.

With 278 Westside stores, 854 Zudio outlets—including a handful abroad—and dozens of other lifestyle formats, Trent is well-positioned to deepen its footprint.

This focus on micro-markets within city peripheries is expected to yield higher returns by catering directly to local demand patterns.

In summary, Trent's push into small-town India underscores a calculated bet on evolving consumer trends, youthful aspirations, and untapped markets to sustain its impressive growth trajectory amid a recovering economy.