Tata Group retail firm Trent has registered a 30 percent
increase in its net profit at Rs 13 crores for the first quarter ended June 30, 2012. The company’s net profit during the same period last fiscal stood at Rs 10 crores, it said in a filing to the Bombay Stock Exchange. Trent’s net sales for the three months ended June 30, 2012, increased 22.6 per cent at Rs 218 crores as against Rs 178 crores in the year ago period.
The company is on an aggressive retail expansion drive unlike its past image of being ultra-conservative in expansion of stores. The retailer, which rolled out around 60 stores in the first 13 years of operations, is planning to add 24 more, around one third of its total count, this financial year alone. Currently, it has 66 Westside stores.
Trent plans to achieve a store target of 100 for Westside and 50 for its hypermarket chain Star Bazaar in the next four years. Currently, Trent has over 100 stores across its three major formats—Westside, Star Bazaar and book and music chain Landmark. In March, the company raised Rs 250 crores through qualified institutional placement to expand the business.
The new retail strategy would help the company clock a top line of Rs 5,000 crores in the next two to three years from the Rs 1,844 crores it posted in 2011-12. While it is launching new stores, it is changing its store expansion strategy to keep costs under check. Of the 24 Westside stores, a vast majority will be stand-alone properties to save the costs one has to incur if a store is set up in a mall.
The company is also focussing Tier-II towns such as Dehradun and Allahabad to save on rents and expand its reach.