Bata India targets 900 stores under Zero Base Merchandising by 2026 as retail strategy shifts

Bata India is stepping up its retail reset as it looks to drive the next phase of growth, with sharper store assortments, faster inventory cycles and wider digital reach becoming central to its strategy. The footwear maker, which operates more than 2,000 brand outlets in India, said at its 93rd Annual General Meeting that it is moving towards a more consumer-led model focused on higher volumes, premiumisation and stronger engagement.

One of the biggest changes is Zero Base Merchandising, or ZBM, which is now operational across more than 800 stores and is expected to reach over 900 stores by the end of 2026. The initiative uses local demand signals to determine store assortments, helping Bata reduce clutter, improve availability and make products more relevant to individual catchments.

Footwear consumers increasingly look for a combination of comfort, style, value and convenience, rather than relying solely on established brands, claims the company. Bata is therefore attempting to make its large retail footprint more responsive to changing preferences, while also refreshing its product mix across brands such as Hush Puppies, Power, Floatz, Comfit and its core Bata portfolio.

From store expansion to sharper execution

Bata’s retail network is supported by more than 775 franchise stores, multi-brand distribution, its direct-to-consumer platforms and marketplaces. More than 1,000 stores are now omnichannel-enabled, while 70% of its stores can offer hyperlocal delivery. The company is increasingly using this network not just to expand reach but to make stores part of a wider digital and fulfilment ecosystem.

The focus on execution has also begun to show up in inventory metrics. Bata India said in-store availability has improved by 8% in India, while inventory freshness has risen from the mid-70% range to around 90%. The improvement has been supported by season-to-season new-to-store product resets, allowing the company to present fresher merchandise and respond more quickly to changes in consumer demand.

Ashwani Windlass, chairman, Bata India, said FY26 was a year of purposeful transformation for the company. “We are strengthening competitiveness, improving agility and preparing the business for sustainable growth,” he said, adding that the company’s focus remains on “product excellence, contemporary styling, enhanced comfort and superior value.”

The transformation is also taking place against a complex external environment. Windlass said diversified sourcing, disciplined inventory management and agile execution had helped the company navigate the challenges during the year. “As we look ahead, we do so with cautious optimism. While there is still work ahead, the direction is clear and execution is gathering momentum,” he said.

The financial performance remained largely flat during the year. Bata India reported a standalone turnover of ₹3,515.48 crore for FY26, up 0.79% from ₹3,488.03 crore a year earlier. On a consolidated basis, turnover stood at ₹3,515.50 crore. Profit was impacted by exceptional and one-off costs of ₹71.41 crore, including ₹42.37 crore towards a voluntary retirement scheme, a non-cash forex loss of ₹22.37 crore following sharp currency depreciation and ₹6.67 crore related to the new Labour Codes.

But Bata India’s strategy includes strengthening its marketing and storytelling to make its brands more relevant to younger, digitally influenced consumers. The company is seeking to balance its legacy brand strength with contemporary products and stronger value propositions.

The company has approved a final dividend of 180%, in line with its Dividend Distribution Policy. Its wider social initiatives during the year reached more than 9,200 students, supported by over 7,000 hours of employee volunteering.

As Bata enters its next phase, the emphasis is shifting from simply expanding its physical footprint to extracting greater productivity from the network it already has. The combination of localised merchandising, fresher inventory, omnichannel fulfilment and portfolio upgrades is expected to underpin its pursuit of sustainable and profitable growth.