It's not just clothes that make the person. Retailing major Trent probably had this in mind when it acquired Landmark, India's largest book and music retailer.

Trent already had a well-established presence through Westside, its chain of lifestyle stores, and its Star India Bazaar hypermarket in Ahmedabad. It was looking to gain access to India's growing leisure segment (books and music) on which an increasing number of urban Indians were spending a larger percentage of their disposable income.

Landmark was an obvious choice for the Tata Group's retail arm and Trent picked up a 76-per cent stake in the company. Landmark has a fine retail concept and Trent sees significant synergies in the partnership for a mutual growth strategy.

Striking the high notes
"Landmark is arguably India's finest book and music retailer. It is the largest and most profitable retailer of books and music. Each of its stores attracts a quality clientele and is a success in the cities it operates," says Landmark COO Himanshu Chakrawarti.

It is a deal that benefits both companies. Trent gained access to the leisure segment while providing Landmark with the backing it needed to grow beyond its predominantly southern base to a pan-India presence.

Landmark opened its first store in Chennai in 1987. It has since grown to three stores in that city and one in Bangalore. The large format stores offer a wide range of brands and categories in music, toys, books, stationery, gifts and home accessories.

It also owns one of the largest book distribution companies, Westland Books, which prides itself on its impressive publishing profile, and one of the best online bookshops, www.landmarkonthenet.com, with over 1.1 million titles.

It takes two to tango
Since Westside and Landmark cater to a similar consumer base, the deal has generated a huge number of cross-promotional opportunities. Merchandising synergies will expand offerings and sourcing options. Synergy is property procurement will help reduce the cost of occupancy for both Trent and Landmark. Other benefits include a shared pool of retail talent, as well as synergies in training and recruitment, and in media buying.

Trent now plans to aggressively grow all three of its retail formats. Landmark and Westside will continue to exist as two separate brands in the future as well. New stores in more cities are being planned for Landmark to scale it up to 10 stores in the next 12 months. However the company has to address some challenges. Technology changes especially in music (in terms of free downloading from the net) and piracy in both books and music are major issues. 

Trent also plans to make Westland India's largest book distributor, and put into motion a strong publishing programme. The company will also explore new store sizes and formats.

Uploaded on May 17, 2006