Tata-owned retail giant Trent is strategically adjusting its stake in the Massimo Dutti India venture. The company plans to sell a 29 per cent share to Spanish retail firm Grupo Massimo Dutti for approximately US $ 2.39 million (Rs. 20.75 crore), reducing its overall holding to 20 per cent, according to a report.
This move comes despite recent market fluctuations that have seen Trent’s shares dip. The Massimo Dutti partnership, separate from Trent’s Zara association with the Inditex group, has shown positive performance, with revenues increasing by 14 per cent to US $ 11.73 million (Rs. 102 crore) in FY ’24. This demonstrates Trent’s continued commitment to the brand and its potential in the Indian market.
The decision to streamline the Massimo Dutti partnership coincides with Trent’s broader strategy to optimise its store portfolio. The company recently reported single-digit same-store sales growth in the December quarter and is focusing on upgrading and consolidating smaller stores while expanding into more promising locations.
Trent Chairman, Noel N Tata, emphasised the company’s focus on both expanding reach and improving store quality. He expressed confidence in the company’s growth trajectory and the strong customer response to its brands.
The recent re-entry of online fast-fashion brand SHEIN into the Indian market through Reliance Retail has impacted Trent’s shares, raising concerns about potential competition for its value-priced brand, Zudio.
