Tata group’s Trent, which formed a venture for multi-brand retail with Tesco, is contemplating launching different formats, including mid-sized stores, for ‘Star Bazaar’ to achieve profitability at a faster pace, as per a PTI report.
Noel Tata, Chairman, Trent said the chain is evaluating other formats. The company opened a smaller format called Star Daily in Pune, a convenience store which it claims is doing well. It now plans to launch a second such store soon as the mid-sized formats will help in speeding up the profitability of Star Bazaar.
Currently, Star Bazaar has 12 hypermarket stores, each spread over 40,000-80,000 sq.ft. Trent Hypermarket Ltd (THL) operates the Star Bazaar retail business in India.
In March, UK retailer Tesco announced the equal joint venture with Trent by picking up a 50 per cent stake in THL for about 85 million pounds.
Tesco is the first global retailer to apply for multi- brand retailing after the outgoing United Progressive Alliance government allowed 51 percent foreign direct investment in the segment in 2012. The Foreign Investment Promotion Board approved its proposal on December 30.
Tata said the company plans to add at least five stores every year in Maharashtra and Karnataka.
Commenting on the partnership with Tesco, Tata said: “Star Bazaar’s association with Tesco underlines the solid foundation of the business and is a signal of the untapped opportunity in the Indian market.”
Trent also plans to revamp its ‘Landmark’ brand stores by reducing focus on books and making it a lifestyle product. “We are planning to reduce focus on books, although books are still a quarter of the turnover, and look at new areas such as technology, gifting options, and sports,” added Tata.