P Venkatesalu, managing director at Trent, which runs Westside, Zudio and Star Bazaar, believes the retail business is about constant change and staying relevant to the consumer. Venkatesulu, 47, who has been with Tata Group for over two decades and was elevated to the MD’s post in 2024, talks to Viveat Susan Pinto about how the retail company is navigating the consumer slowdown, competition from fast-fashion brand Shein, and Trent’s bet on categories beyond food and fashion.
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What do you think of the demand environment in retail? Most retailers have pointed to a prolonged slowdown…
Demand has been less strong in recent months, but certain pockets have been positive. Having said that, is it all gloom and doom in retail? I wouldn’t think so. If you look at the last five-year period, demand has never been linear or smooth in retail in general. There have been positive spikes as well as negative demand trends. However, if you look at a 10-year horizon, the domestic retail market has been growing at a CAGR (compounded annual growth rate) of about 9-10%. So, the secular trend of growth remains intact. However, consumer demand varies across markets with pockets of growth.
The fiscal stimulus announced in the Budget is expected to boost consumption, especially in the discretionary space. Do you think it would kickstart the virtuous cycle of growth in retail?
The Indian consumer is getting far more exposure to brands today and what is good for her from a consumption standpoint. This has also made her far more aspirational than earlier. To that extent, any initiative, policy measure or stimulus that puts more money in her hands is going to be good for consumption. It will be difficult for me to put a specific finger on the pulse of the consumer and indicate where she will put that extra money. But directionally speaking, the fiscal stimulus is positive for the retail industry.
The value retail market has seen the re-entry of fast-fashion brand Shein in partnership with Reliance Retail. The Trent stock has taken a beating recently as most investors view Shein’s re-entry as direct competition to Zudio. Your thoughts…
Retail in India has always been competitive and intense.
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