The tie-up with Tesco for back-end support has provided Tata's retail arm, Trent, a further boost. The subsidiary, with Noel N Tata at its helm, has been expanding fast, just like the company's apparel chain Westside and book-and-music store Landmark, despite the economic slowdown and 13-year-high inflation. Nevin John and Raghavendra Kamath spoke to Tata on the arm's expansion plans and issues in the sector. Excerpts:
Are you holding back the expansion of Westside and Landmark due to the current market conditions?
We are confident of the market situation. We are reaching out to prospective consumers in tier-II and III cities. In a year, we will invest around Rs 50 crore for expansion of these arms. Westside will raise its number of stores to 50 from 39 now. Landmark also plans to add 5 or 6 outlets. We are also 50 new hypermarkets, for which we have signed the deals for 25 properties. We intend to invest Rs 2,000 crore in the hypermarkets.
How are you coping with the delay in delivery of properties?
It is true that we are heavily dependent on properties. We have not been able to expand as planned due to real estate issues. We are considering investment in a few malls as part of expansion.
Do you have plans to spread your ventures outside India, like other Tata firms?
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We are pursuing all kinds of opportunities. But we can't talk about that now.
Will you design your upcoming Star Bazaars on the lines of Tesco in the UK and co-brand with them?
They will continue to have the same look as our earlier stores, though we can take some design aspects from Tesco.
As far as co-branding is concerned, Star Bazaar is well-established. There is no need for any association with other brands.