New Delhi: Bata India is accelerating its retail transformation with plans to more than double its zero-based merchandising (ZBM) footprint to 800 stores by December 2026, while betting on aggressive franchise expansion and technology to capture market share across tier 3-5 towns, a company’s senior official told ETRetail.
The 130-year-old footwear retailer has already deployed ZBM across 400 outlets, up from 100 stores a year ago.
“Zero-based merchandising is becoming the core backbone of our retail network,” said Badri Beriwal, chief strategy officer and chief business development officer, Bata India. “We are planning assortments bottom-up based on local demand signals rather than a uniform push from the centre.”
Franchise network and tech utilisation on fast track
Bata’s franchise network has grown from 100 stores five years ago to 700 currently, while company-owned stores number around 1,300. The company plans to double its annual store addition rate from the current 70-80 outlets, with franchise stores expected to overtake the company-owned network within a couple of years.
The expansion strategy is clearly divided: company-owned stores focus on metros and tier 1 locations with modern layouts and premium ranges, while tier 2-3 markets see franchise-led growth tailored to local price sensitivities and family buying behavior, Beriwal explained.
“We precisely have the right locations mapped as potential trade areas where we can open our stores, with size estimators and revenue estimators for each location,” Beriwal explained, noting this data science approach gives Bata confidence to penetrate deeper markets.
Talking more about technology utilization, the company shared that it has consolidated 22 separate applications into Bata Hub, a unified retail platform that handles everything from attendance and customer feedback to visual merchandising.
Omnichannel push gains momentum
Bata is expanding omnichannel capabilities from 100 stores last year to over 400 in Q1 2026, with 40% of stores currently offering hyperlocal delivery. The company is experimenting with 10-minute delivery in select locations while exploring 4-hour delivery through quick commerce partnerships.”We aim to become India’s largest omnichannel retailer by leveraging our 2,000-store network to offer faster delivery from nearby stores rather than distant warehouses,” Beriwal said.
On the price parity across platforms, the company said it maintains the same pricing across physical stores, Bata.com, and marketplaces including Flipkart, Amazon, Myntra, and Ajio.
GST relief creates sweet spot
The recent GST reduction on footwear below Rs 2,500 from 18% to 5% has created favorable market conditions. Bata offered the benefit a month before official implementation, absorbing the margin hit to build consumer goodwill.
“The benefit levels the playing field against local and unorganized players,” Beriwal explained. “People see value in paying 4-5% more for great quality. As consumers who buy twice a year enter new purchase cycles in coming quarters, we expect demand momentum to accelerate.”
According to Euromonitor, Bata’s market share increased from 4.3% to 4.8% between 2020 and 2024. With enhanced product appeal for younger consumers, deeper tier 3-5 penetration, and GST tailwinds, the company expects to further strengthen its position in organized footwear retail.
The company is currently positioning India as a global export hub within the Bata worldwide network.
