Tata’s Trent catches a trend as spending shifts beyond Bengaluru & Mumbai

Tata-owned Trent on Wednesday said it continues to open stores within select existing catchments across Tier I and Tier II cities and ramp up presence in many smaller markets, as it seeks to tap the growing income and economic activities beyond the plush metro cities of India.

Trent, which owns and operates fashion retail formats such as Westside, Zudio and Utsa, said more than 80% of new Zudio stores in the last fiscal year were opened in Tier II, III cities and in peripheral new growth micro-markets.

“The intent is to grow our presence in both existing as well as new micro-markets/ geographies and to position ourselves favourably as more regions register stronger economic growth,” the company said in a statement after announcing the Q4 results.


“The agenda is to pursue growing reach and share of revenues as we selectively increase the density of our presence across key markets with an improving customer proposition,” it added.

Also Read: From Bhatinda to Bardhaman, small towns are new money generators

Trent's strategy begins to show results

Trent said that its strategy of building a stronger presence in select clusters, along with improving its customer offering, was beginning to show encouraging early results in terms of both revenue density and profitability. The company added that the newer markets it is entering offer significant growth potential, though these markets are likely to take time to mature in terms of fashion adoption and consumption levels.

“Hence, the revenue profile and the growth trajectory of newer stores are not entirely comparable with that of the existing portfolio. Our experience indicates that newer markets become more relevant over a two-to-three year period,” it said.

Small towns in India are fast emerging as the new money generators for India Inc. Several companies, from FMCG to durables to apparel, are eyeing to expand in small towns and rural areas.

Trent had earlier indicated plans to open more stores in India’s smaller cities and towns to tap demand and income surge in those parts of the world’s most populous country.

In the fourth quarter of FY26, Trent opened 23 Westside and 109 Zudio stores, including two in the UAE. It also shut one Westside store and entered 47 new cities.

For the full year, the company opened 60 Westside and 212 Zudio stores, including four in the UAE, while closing eight Westside and 14 Zudio outlets.

As of March 31, 2026, Trent’s network stood at 300 Westside stores, 963 Zudio stores, including six in the UAE, and 23 stores under other lifestyle formats. Together, its fashion brands covered a total retail space of more than 17.7 million square feet.

Tren today declared its first-ever bonus issue, offering shares in a 1:2 ratio to more than five lakh shareholders. Trent also reported a 26% on-year rise in its consolidated net profit for the fiscal fourth quarter to Rs 400 crore. Revenue from operations rose 19% on year to Rs 5,028 crore.

Also Read: Trent announces first-ever bonus issue in 1:2 ratio. Check details

Trent and Iran war impact

Trent consumer sentiment was fairly stable at the start of the fourth quarter, though the impact of ongoing geopolitical tensions is still unfolding. It said customers are becoming more cautious with spending, leading to a slowdown in discretionary purchases amid continued economic uncertainty and the possibility of a higher cost of living.

The company added that overall demand and long-term market opportunities remain strong. However, it warned that the duration and intensity of disruptions in the Middle East, along with their knock-on effects on supply chains, commodity prices and inflation, could affect demand in the near term.

Trent also said input costs for some raw materials are starting to rise. In addition, there are some challenges around labour availability for suppliers in certain regions. It said it is managing the situation through careful sourcing decisions and closer engagement with suppliers, while most of its sourcing continues to be based in India.

The company added that it is working to keep its value offering stable for customers. It said its scale and diversified sourcing network are helping ensure steady product availability across its channels.

Why retail is moving into smaller towns

India’s retail growth is no longer limited to big metro cities. Smaller cities are quickly becoming the next drivers of growth for the country’s retail real estate sector.

According to Cushman & Wakefield’s Q3 2025 Retail Market Beat report, leasing activity in Tier II and Tier III cities picked up sharply last year. This points to rising confidence among retailers and changing consumer habits. The report also suggests that India’s real estate market could reach $10 trillion by 2047, with much of the future retail development likely to happen in these smaller cities.

The data shows that fashion, food and beverage, and entertainment are leading demand in these emerging markets. This reflects a shift in how people are spending, with more focus on experiences rather than just shopping.

Consumers in smaller cities are now spending more on lifestyle and leisure, which is pushing developers to create spaces that bring together shopping, dining and entertainment. Developers, brands and investors increasingly see these cities as strong growth areas where modern retail can reach new customers. With rising aspirations and better infrastructure, the next phase of retail growth in India is expected to spread across multiple cities, driven by both consumer demand and investor interest.

Meanwhile, consumers are also becoming more globally aware, and the way people discover and buy luxury is changing as these brands reach new parts of the country. As India’s luxury market moves towards an estimated $90 billion by 2030, according to Bain & Company, wealth is spreading beyond the big metro cities.