Bata India Targets 900 Stores Under Zero Base Merchandising by 2026

Bata India is stepping up its retail transformation as the footwear major targets more than 900 stores under its Zero Base Merchandising (ZBM) strategy by the end of 2026. The initiative is designed to make store assortments more responsive to local demand, improve product availability and reduce excess inventory as the company looks to strengthen productivity across its retail network.

The shift comes as Bata India moves beyond simply expanding its physical footprint and focuses on extracting greater value from its existing network. The company, which operates more than 2,000 brand outlets in India, is combining localised merchandising with inventory freshness, omnichannel fulfilment, franchise expansion and portfolio upgrades as it seeks to build the next phase of growth.

Bata India Expands Zero Base Merchandising Rollout

Zero Base Merchandising has become one of Bata India’s key retail initiatives. The programme was operational across more than 800 stores as of the latest update, with the company targeting more than 900 stores by the end of 2026.

The concept is centred on determining store assortments based on local demand signals rather than relying on a uniform product mix across the network. This allows Bata to tailor merchandise to the preferences and purchasing patterns of individual store catchments.

The strategy is intended to reduce clutter, improve availability and ensure that customers see products that are more relevant to their local market. Bata has also linked the initiative to improvements in merchandising efficiency and the overall in-store experience.

ZBM Moves From Pilot to Large-Scale Retail Strategy

Bata’s ZBM rollout has expanded rapidly over the past year. In February 2026, the company said the programme had reached more than 400 stores. By May, management said ZBM had been completed across 700 stores, with those stores accounting for a significant share of the turnover within the company’s company-owned store network.

The company has continued to scale the initiative as it evaluates the impact on consumer experience, sales productivity and store economics. The latest target of more than 900 stores indicates that Bata sees localised merchandising as a structural part of its retail strategy rather than a limited pilot.

Why Bata Is Changing Its Retail Strategy

Bata’s retail reset reflects changing consumer expectations in India’s footwear market. Consumers are increasingly looking for a combination of comfort, style, value and convenience, requiring retailers to refresh their assortments more frequently and respond faster to changes in demand.

For a large store network, maintaining the same assortment everywhere can result in products that sell quickly in one location remaining less relevant in another. ZBM attempts to address this problem by making merchandising more closely connected to local customer profiles.

The strategy also supports inventory management. Bata has reported improvements in inventory freshness, with the proportion of fresh merchandise rising to around 90%, while in-store availability has improved by 8% in India.

Fresh Inventory Becomes a Key Focus

Inventory quality and freshness have emerged as important components of Bata’s transformation. The company has been using season-to-season product resets to introduce newer merchandise and respond more quickly to changing consumer preferences.

Earlier in the year, Bata also reported an approximately 11% reduction in gross inventory, alongside continued improvements in inventory efficiency. These changes are important for a retailer because better inventory discipline can reduce the amount of capital tied up in slow-moving products while improving the availability of products customers actually want.

Omnichannel Network Supports Retail Transformation

Bata’s retail strategy is not limited to physical store merchandising. The company is increasingly connecting its stores with digital channels, turning its retail network into part of a broader omnichannel fulfilment system.

More than 1,000 Bata stores are now omnichannel-enabled, while around 70% of stores can offer hyperlocal delivery, according to the latest company update.

The wider retail network includes more than 775 franchise stores, along with multi-brand distribution, direct-to-consumer platforms and marketplaces. Bata has also been expanding its franchise-led model to reach smaller towns and cities.

The combination of ZBM and omnichannel capabilities could allow Bata to make better use of store-level inventory. Products available at a particular location can potentially serve both walk-in customers and nearby online orders, improving the productivity of the existing network.

Bata India Looks Beyond Store Expansion

Bata has crossed the 2,000-store mark in India and is targeting a network of around 3,000 outlets over the next few years, with franchise stores expected to play a major role in expansion across Tier III and Tier IV markets.

This makes productivity at existing stores increasingly important. Simply adding outlets can increase the company’s reach, but stronger merchandising and inventory management can help improve the economics of stores that are already operational.

The company’s ZBM strategy therefore sits alongside its expansion plans rather than replacing them. New franchise locations can extend Bata’s footprint, while localised merchandising can help existing stores serve their individual markets more efficiently.

Premiumisation And Brand Refresh Remain Important

Bata is also attempting to make its portfolio more relevant to younger and digitally influenced consumers. Brands including Hush Puppies, Power, Floatz and Comfit are part of the company’s broader product strategy, while the core Bata brand continues to be supported by new styles, comfort-focused products and refreshed assortments.

The company has also increased marketing and storytelling efforts, seeking to balance the strength of its established brand with more contemporary positioning.

Premium categories have shown stronger growth, while e-commerce has also remained an important growth channel. Bata’s broader strategy is consequently built around several interconnected levers: product premiumisation, merchandising, digital engagement, inventory efficiency and retail expansion.

Financial Performance Remains A Key Monitorable

The retail transformation is taking place against a backdrop of relatively modest overall financial growth. Bata India reported standalone turnover of ₹3,515.48 crore for FY26, compared with ₹3,488.03 crore in the previous year, representing growth of 0.79%. Consolidated turnover stood at ₹3,515.50 crore.

Profitability was affected by exceptional and one-off costs during the year, including expenditure related to a voluntary retirement scheme, a non-cash foreign exchange loss and costs associated with the new Labour Codes.

This makes the performance of ZBM and other efficiency initiatives particularly relevant. If better assortment planning, inventory freshness and store productivity translate into sustained revenue and margin improvements, the strategy could become an important contributor to Bata’s financial recovery.

The Bigger Picture

Bata India’s move toward more than 900 ZBM stores reflects a broader shift in organised retail from footprint-led expansion toward productivity-led growth. Localised assortments, faster inventory cycles and omnichannel fulfilment are becoming increasingly important as consumers expect retailers to offer products that are relevant, available and convenient across both physical and digital channels.

For Bata, the opportunity is to use its large store network as an integrated retail and fulfilment ecosystem. The company’s ability to combine ZBM with franchise expansion, premiumisation and digital channels will determine whether the strategy can deliver sustainable improvements in store productivity and profitability.

Looking Ahead

Bata’s immediate focus will be on completing the ZBM rollout to more than 900 stores by the end of 2026 while continuing to monitor product availability, inventory freshness and store-level productivity. The company has already moved from more than 400 ZBM stores earlier in the year to more than 800, making the next phase primarily an execution challenge.

Over the longer term, the success of the strategy will depend on whether Bata can translate localised merchandising and stronger inventory management into consistent sales growth and improved returns from its retail network. With further franchise expansion and omnichannel investments planned, the company is increasingly focused not just on how many stores it operates, but on how effectively each store serves its local customer base.