Bata India , a leading footwear retailer, has unveiled plans to expand its retail footprint and enhance its digital presence, according to recent company announcements.

Expansion Strategy

Bata India aims to cross the 2,000-store mark by the end of fiscal year 2026 (FY26), primarily through franchise network expansion. The company plans to add 200 franchise stores annually to achieve this goal.

Digital Growth and Inventory Management

The company reports progress in its digital initiatives:

• Digital sales are growing at 25% year-over-year
• Bata.com, the company's e-commerce platform, grew by 25% compared to last year
• Quick Commerce is now live on Zepto and Swiggy Instamart in over 25 cities through 140+ superstores

Bata India has also improved inventory management, with inventory decluttering boosting stock turns 1.9 times. This improvement is reflected in both quantity and quality of stock.

Premium Portfolio Performance

The company's premium portfolios, including Hush Puppies and Power, are delivering higher average selling prices and supporting profitability recovery. Highlights include:

• Launch of the ICONIC Collection under the Festive Collection
• Positive results from the Hush Puppies Office Sneakers campaign
• Power portfolio investments focusing on technology and innovation

Marketing and Brand Initiatives

Bata India has increased its marketing spend, which has doubled compared to the previous year. The company is now investing 3.5% of its turnover in marketing, up from 1.5% in the same quarter last year. This increased spending aims to strengthen brand equity and support growth initiatives.

Financial Performance

While specific financial figures were not provided, the company's focus on premium portfolios and digital growth suggests a strategic shift towards higher-margin segments. The GST benefit pass-through may further strengthen the brand's position in the market.

Outlook

Bata India's approach, focusing on store expansion, digital growth, inventory management, and premium portfolio development, may position the company for potential growth. However, the success of these initiatives will depend on market conditions and consumer response to the company's strategies.

As Bata India continues to execute its plans, investors and market observers will be watching to see how these strategies translate into financial performance and market share in the Indian footwear market.

Bata India Limited , a leading footwear retailer, has unveiled an ambitious growth strategy aimed at significantly boosting its revenue by the fiscal year 2027. The company has set its sights on achieving a quarterly revenue run-rate exceeding ₹4,500 crore, marking a substantial increase from its current performance.

Expansion and Premium Strategy

To reach this ambitious target, Bata India plans to implement a two-pronged approach:

1. Store Expansion: The company aims to add 900 new franchise stores to its network. This expansion is likely to focus on smaller towns and semi-urban markets, enhancing Bata's reach across India.

2. Premium Brand Mix: Bata intends to expand its premium brand offerings. This strategy aligns with the growing consumer demand for high-quality, fashionable footwear.

Financial Outlook

Bata India's financial projections include:

• Revenue Target: Quarterly revenue run-rate exceeding ₹4,500 crore by FY27.
• EBITDA Margin: The company expects its EBITDA margin to recover to 22% as consumer demand rebounds.
• GST Impact: Bata anticipates a normalization following the GST 2.0 transition, which is expected to positively impact its financial performance.

Recent Performance

The company's recent financial results reflect the challenges and opportunities in the current market:

All figures in ₹ million

• Exceptional Item: A one-time expenditure of approximately ₹83 million towards a Voluntary Retirement Scheme (VRS) at one of its manufacturing units.

Strategic Initiatives

Bata India is implementing several strategic initiatives to drive growth:

1. Zero Base Merchandising Project: Scaled to 200 stores, showing promising results in consumer experience and revenue per square foot.
2. Franchise Expansion: Added 30 franchise stores in the last quarter, focusing on smaller towns and semi-urban markets.
3. Premium Product Focus: Brands like Hush Puppies and Power are showing robust growth.
4. Product Innovation: The Victoria Ballerina campaign and Power Easy Slide collection have contributed significantly to sales mix and pairage contribution.

Market Outlook

Gunjan Shah, MD and CEO of Bata India Limited, expressed cautious optimism about the company's recovery, stating, "We remain cautiously optimistic about recovery towards balance of this year, backed by our strong market positioning and wide network while maintaining strong focus on cost efficiencies."

The company notes that early festive trends indicate steady demand recovery, particularly after September 22nd, following the initial impact of the GST 2.0 transition.

Bata India's strategic focus on premium products, store expansion, and product innovation, combined with its strong market position and wide network, positions the company to capitalize on the recovering consumer demand in the Indian footwear market.