Bata India targets 800 zero-based merchandising outlets by 2026: Report

Bata India is planning a sharp expansion of its retail and franchise network, with a focus on smaller towns and technology-led merchandising, as it looks to strengthen market share amid a challenging demand environment.

The footwear retailer aims to more than double the number of stores using its “zero-based merchandising” model to about 800 outlets by December 2026, from around 400 currently, according to a report by The Economic Times.

Badri Beriwal, chief strategy officer and chief business development officer at Bata India, told the newspaper that the company had rolled out the zero-based merchandising format across 400 stores, up from 100 outlets a year ago, adding that the model was becoming central to its retail network.

Bata is also accelerating franchise-led expansion. Beriwal said the company’s franchise network has grown from about 100 stores five years ago to roughly 700 outlets currently. The company plans to double its annual store addition rate from 70–80 outlets at present, having identified potential trade areas with size and revenue estimators to guide expansion.

The retailer is targeting tier 3 to tier 5 towns as part of its growth strategy, supported by investments in technology and operational consolidation. The company has merged 22 separate internal applications into a unified platform, Bata Hub, which integrates functions such as customer feedback and visual merchandising.

Beriwal said the reduction in goods and services tax on footwear priced below Rs 2,500—from 18 per cent to 5 per cent—has created more favourable market conditions. According to Euromonitor, Bata’s market share rose from 4.3 per cent in 2020 to 4.8 per cent in 2024.

Separately, Bata India’s board last week approved the introduction of a voluntary retirement scheme for eligible workers at its Bata Shatak manufacturing unit in Hosur, Tamil Nadu. The company said the scheme would be offered to all eligible employees at the unit and was expected to be mutually beneficial for both workers and the organisation.

The expansion plans come against the backdrop of weak recent financial performance. In the second quarter of the current financial year, Bata reported a 73.26 per cent year-on-year fall in consolidated net profit to Rs 13.9 crore, weighed down by lower revenue and higher expenses during the transition to the GST 2.0 regime. Consolidated revenue from operations declined 4.3 per cent to Rs 801.33 crore for the quarter ended September 30, 2025.