DMart vs Trent: Which is the best retail stock?
Indian retail industry ranks fourth globally and accounts for more than 10% of India’s gross domestic product (GDP). Rising disposable incomes, rapid urbanisation, technological advancements, increased brand awareness, and improved shopping experience are significant growth drivers of the retail industry. Within this fast-paced industry, two players have captured the nation's attention with consistent growth in revenue and profits.
While Avenue Supermarts (Dmart) is a price-conscious shopper’s paradise, the other, Trent, is a prestigious Tata group company redefining fashion and lifestyle. Let’s compare the two companies on various parameters to see which is a better retailing stock. Avenue Supermarts, which runs popular supermarket chain Dmart, focuses on value retailing and offers a wide range of products, including food, non-food (FMCG), general merchandise, and apparel.
It has a strong retail presence, around 365 stores across 10 states and union territories. The company’s total retail business area is around 15.15 million (m) square feet. To keep up with the competition from e-retail, it is focussing on improving its e-business.
It closed down two stores in Mumbai and converted them into e-fulfilment centres. The company plans to further expand its store and e-commerce presence. Part of the Tata group, Trent is engaged in the business of retailing food, grocery, non-food, apparel, footwear, accessories, toys, and games through format and concept stores.
The company operates over 875 stores across 170 cities for various brands such as Westside, Zudio, Utsa, Misbu, and Star. Its total retail business area is around 11 million square feet, slightly lower than Avenue Supermarkets. Apart from a strong retail presence,
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