The Indian footwear giant Bata is overhauling its retail strategy by getting back into the fast track by devising three strategies.
The Indian footwear giant Bata is overhauling its retail strategy by getting back into the fast track by devising three strategies. These strategies are to set up 60 large format stores, closing its non profiting stores and by increasing its sales to institutional businesses. Also Bata has recently opened 32 retail stores in a minimum area of 3,000 sq. ft each, defying the trend in the retail industry of putting expansion plans on hold. The stores operate in a four-tier retail format under a new model -- upmarket flagship stores, smart and trendy city stores and super stores and traditional family stores. These large-format stores are mostly franchise-run and have helped Bata to bring its contemporary and trendy range of footwear sold in an international style outlet to customers even in small towns. The idea behind the adoption of these strategies is swift expansion and upgradation. Bata is also following its second strategy by reducing the number of its unviable stores from 140 to 74 and is ready to shut down more such stores in future. Along with this, the company has also focused upon providing the customers with a novel trendy collection and better shoe designs. The company is also depending on institutional business by starting tailor-made shoes for hospitals, military forces, factory workers and airlines. Bata has already set up a dedicated team headed by a retired Defence man to secure contracts as Defence authorities currently source most of its footwear requirement from unorganised players. The country has 45 million workforce in various manufacturing and mining sector and the company sees this as a good business opportunity. Parent group Bata Worldwide would be providing technology sourced from the Safety and Industrial Centre at Holland.