- 06 Apr 2022
- ICICIdirect Research
Tata super app launch to aid in expanding Westside’s online customer base
TRENT - 7159 Change: -11.90 (-0.17 %)News: As per media reports, the management of Trent India expects 10x jump in its customer base from current 7 million loyalty members to 70 million Tata consumers post the launch of ‘Tata Super App’. Regarding input cost inflation, the company is diversifying its supply chain to offset rising prices. The company expects its value fashion brands Zudio (~25% of revenues) to outpace Westside due to industry size of the value segment and scalability of the brand (store size one-third that of Westside)
Views: Among our retail coverage universe, Trent continues to be an outperformer in terms of robust sales growth and accelerated store addition pace. Despite various headwinds, the company continued its aggressive store addition openings(added~125 stores in FY22) owing to its healthy balance sheet (cash & investments: ~ 685 crore). It now has 200 Westside stores and over 180 stores of Zudio. In the long run, the company aims to grow its revenue at CAGR of 25%+. The company’s presence on the super app will further boost its online revenues as the company expects to increase its online revenue share from 6% currently to 10%
Impact: Positive