Bata India plans to extend its Zero Base Merchandising (ZBM) strategy to more than 900 stores by the end of 2026, as the footwear retailer shifts towards a more localised, consumer-led retail model amid a challenging external environment.

ZBM is already operational across more than 800 stores and is aimed at tailoring store assortments to local demand, reducing clutter, improving product availability and making it easier for consumers to navigate stores, according to the company.

The strategy marks a shift from a uniform store approach to one that responds more closely to individual catchments, occasions and changing shopping behaviour, the company said at its 93rd annual general meeting on Tuesday.

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Retail remains central to Bata India’s growth strategy. The company operates more than 2,000 brand outlets, supported by over 775 franchise stores, multi-brand distribution, direct-to-consumer platforms and marketplaces. More than 1,000 stores are omnichannel-enabled, while 70% of its stores offer hyperlocal delivery, according to the company

Bata India chairman Ashwani Windlass said the company was using the transformation to strengthen its competitiveness and improve agility, with product quality, contemporary styling, comfort and value at the centre of the strategy.

“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,” Windlass said. He added that the company’s renewed focus on product excellence, contemporary styling, enhanced comfort and superior value would “lend new vigour to the generational trust in the Bata brand and its value proposition”.

The company is also focusing on improving execution across manufacturing, sourcing and supply chain. In-store availability has improved by 8% in India, while inventory freshness has increased from the mid-70% range to around 90%, supported by seasonal product resets, according to the company.

Bata said it is also modernising its product portfolio across brands such as Hush Puppies, Power, Floatz, Comfit and its core Bata offerings, with greater emphasis on styling, comfort and value. The company said it is targeting consumers who are increasingly influenced by digital channels and are more conscious of both style and comfort.

Windlass said the company remained cautious about the operating environment despite the progress made during the year.

“The external environment has remained complex, requiring continuous planning and rapid operational responses,” he said, adding that diversified sourcing, disciplined inventory management and agile execution had helped the company navigate the challenges.

“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 added.

Bata said its next phase of growth will be driven by higher volumes, premiumisation, stronger consumer engagement, operational improvement and disciplined capital allocation. The company has also approved a final dividend of 180% in line with its dividend distribution policy.