I would argue and maybe unsuccessfully. Trent has a moat in the sense that 100% of their sales via owned sub-brands. Now these will not be household names. But they are integrated design to customer retailer a-la ZARA or H&M across both Westside and Zudio.
If we see their competitors i.e : Reliance Trends, SS, Lifestyle etc they play on shop in shop or buy and sell models. Maybe 30% of the products they sell are own brands. This impacts margins, ROCE and ability to change as per consumer demand. Look at the problems at SS when they try to push growth.
The play will be larger in future. There will be remote possibility of Tata Neu (entire e-retail) and Trent merging maybe in 10 years when Tata Neu turns breakeven or profitable. This scenario makes sense as it allows Tata Sons to increase shareholding percentage which is lower in Trent and bring entire retail play ex-titan into one company. Also provides exit to minority interests in Tata Neu.
Disclosure: Own it Via Family Account
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