Trent Hypermarket, a Tata enterprise, plans to invest about Rs 500 crore in the next three to four years and increase the number of its Star Bazaars across western and southern regions to more than 50.
“Currently, we have 12 stores across Gujarat, Maharashtra, Tamil Nadu and Karnataka, mainly in metros and large cities. Now, we plan to move into Tier-I and II towns and cities as well,” Jamshed Daboo, CEO, told Business Line here on Thursday.
Adding a new store costs about Rs 10 crore and it takes two years to break even, he said on the sidelines of the launch-eve of the second Star Bazaar hypermarket in Ahmedabad seven years after it opened the first outlet. This store will be opened tomorrow to mark the 107th birth anniversary of J.R.D. Tata on July 29, he added.
Retail outlets of Star Bazaars have, in the last three years, reported a growth of 20 per cent.
This year alone, Trent will add about 20 new stores. In Gujarat, it is scouting for commercial realty in towns such as Rajkot, Anand and Vadodara and will open the second outlet in Surat next year.
Asked about the performance of Star Bazaars, he said the Andheri outlet in Mumbai was the biggest earner for the company.
Established in 1998, Trent entered the hypermarket business in 2004, acquired the Landmark chain in 2005 and launched a value apparel format, Fashion Yatra, in 2008. It also entered into a joint venture with Inditex to bring Zara and its other brands to India. However, asked if Trent could further grow inorganically now, Mr Daboo replied in the negative.
Source – Business Line