The footwear company is using localised store assortments, improved inventory freshness and omnichannel fulfilment to respond to changing consumer demand
Bata India plans to expand its Zero Base Merchandising (ZBM) programme to more than 900 stores by the end of 2026 from over 800 currently, as the footwear company seeks to improve product availability and align store assortments more closely with local consumer demand.
The company outlined the plan at its 93rd Annual General Meeting on Wednesday, where it also highlighted improvements in inventory freshness, in-store availability and omnichannel fulfilment as part of its retail strategy.
ZBM uses local demand signals to determine product assortments at individual stores. Bata India said the approach is intended to reduce assortment clutter, improve availability and make merchandise more relevant to specific store catchments. The company said in-store availability has improved by 8 per cent in India, while inventory freshness has increased from the mid-70 per cent range to around 90 per cent. Season-to-season new-to-store product resets have contributed to the improvement, according to the company.
Stores Support Digital Sales
Bata India operates more than 2,000 brand outlets and over 775 franchise stores, alongside its multi-brand distribution network, direct-to-consumer platforms and marketplaces.
More than 1,000 stores are now omnichannel-enabled, while around 70 per cent of its stores can offer hyperlocal delivery. The company is using its physical network for online fulfilment in addition to serving customers through conventional stores.
Bata India is also refreshing its product portfolio across brands including Hush Puppies, Power, Floatz, Comfit and its core Bata range, with a focus on comfort, styling and value.
“FY 2025-26 was a year of purposeful transformation for Bata India. We are strengthening competitiveness, improving agility and preparing the business for sustainable growth. At the heart of this transformation lies our renewed commitment to product excellence, contemporary styling, enhanced comfort and superior value,” said Bata India Chairman Ashwani Windlass.
The company said diversified sourcing, disciplined inventory management and faster operational responses helped it navigate a complex external environment 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,” Windlass said.
FY26 Financial Performance
Bata India’s retail strategy comes against a backdrop of limited growth in its FY26 turnover. The company’s standalone turnover increased 0.79 per cent to Rs 3,515.48 crore from Rs 3,488.03 crore a year earlier. Consolidated turnover stood at Rs 3,515.50 crore.
Profitability was affected by Rs 71.41 crore in exceptional and one-off costs during the year. This included Rs 42.37 crore towards a voluntary retirement scheme, a non-cash foreign exchange loss of Rs 22.37 crore and Rs 6.67 crore related to the new Labour Codes.
Bata India has approved a final dividend of 180 per cent in line with its Dividend Distribution Policy.
The company said its corporate social responsibility initiatives reached more than 9,200 students during the year, while employees contributed more than 7,000 hours through volunteering. Bata India sells close to 50 million pairs annually and serves more than 250,000 customers each day, according to the company.
