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Indian footwear giant Bata India has unveiled ambitious plans to scale up its Zero‑Based Merchandising (ZBM) retail model to 800 stores by the end of 2026 as part of a broader strategy to deepen market penetration and modernise its retail operations.
The 130‑year‑old brand is leveraging technology and an expanding franchise network to accelerate its footprint — particularly in smaller towns and cities across India — while tailoring product assortments to local preferences rather than relying solely on uniform, centrally planned offerings.
Zero‑Based Merchandising Takes Centre Stage
Bata India has rapidly scaled its ZBM approach this year, growing from about 100 ZBM outlets a year ago to 400 currently. With the target now set at 800 stores by December 2026, ZBM is positioned as the backbone of the company’s retail network.
Under ZBM, store assortments are planned from the ground up, guided by local demand data rather than a one‑size‑fits‑all strategy. This enables the retailer to better match inventory with customer preferences in each location — a key differentiator in regional markets.
Franchise Expansion and Smart Location Mapping
Bata’s franchise network has grown significantly, expanding from around 100 franchise stores five years ago to about 700 today, while company‑owned stores number around 1,300. The company plans to double its annual store additions to 70–80 outlets per year, with franchise locations expected to outnumber company‑owned outlets in the coming years.
The rollout strategy splits responsibilities: metros and tier‑1 cities will see premium, modern layouts under company ownership, whereas tier‑2 and tier‑3 markets will focus on franchise‑led growth tailored to local price sensitivities and family buying behaviour — critical factors in smaller markets.
Bata is employing data science tools — including size and revenue estimators — to pinpoint the most promising trade areas for future stores.
Technology Integration and Omnichannel Ambitions
Technology is playing a central role in Bata’s retail revamp. The company has consolidated 22 separate applications into a single retail platform — ‘Bata Hub’ — which supports functions ranging from employee attendance and customer feedback to visual merchandising.
Meanwhile, Bata’s omnichannel capabilities are expanding rapidly. Last year, roughly 100 stores were omnichannel‑enabled; by Q1 2026, that figure crossed 400, with 40% of outlets offering hyperlocal delivery. The company is piloting ultrafast delivery (as quick as 10 minutes) in select locations, along with plans for 4‑hour delivery via quick commerce partnerships.
Bata aims to become India’s largest omnichannel footwear retailer by leveraging its extensive store network to fulfil online demand from nearby stores rather than distant warehouses — a move expected to improve service speed and customer satisfaction.
Market Dynamics and GST Tailwinds
A recent reduction in India’s GST on footwear below ₹2,500 — from 18% to 5% — has created a more favourable competitive environment for organised retailers such as Bata. The company proactively passed the tax benefit to consumers a month before the government’s official rollout, absorbing some margin impact to build goodwill.
According to industry data, Bata’s market share in India’s organised footwear segment increased from 4.3% to 4.8% between 2020 and 2024. With stronger appeal among younger consumers and deeper penetration beyond major urban centres, the company expects further gains ahead.
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