Kolkata: Footwear major Bata India is planning to add around 100 stores in the 2019-20 fiscal, while downing shutters of 25-30 non-viable outlets, a top company official said on Friday.
It is also looking to open 500 franchisee stores over a period of five years, another official said.
"We have plans to open 100 stores every year and would close 25 to 30, which are either at the wrong place or not making profits. We tend to continue to keep this pace," Bata India Chairman Uday Khanna said.
Bata India had opened 71 new retail and 51 franchisee stores, and renovated 47 outlets across India in 2018-19. It had also relocated 14 stores and closed 28.
He said the company is pursuing the franchisee or wholesaler route for expanding its footprint in smaller cities, towns and rural areas.
Currently, it has close to 1,500 retail stores and nearly 150 franchised outlets.
"We are looking to set up 500 franchisee stores. This is a five-year plan that we have charted out," Bata India Chief Executive Officer Sandeep Kataria said.
Delivering his last speech as the company's chairman at the 86th annual general meeting, Khanna said, "The mantra going forward for the company now must be continuous volume and profits growth, while maintaining a handsome cash flow and increasing our market share."
In FY19, Bata India sold more than 1.5 million pairs of footwear through online channels with a 40 per cent growth over the previous year.
"About 85 per cent of sales come from our retail and franchisee outlets, and the rest from multi-brand stores and e-commerce channels," Kataria said.
E-commerce contributes about 5 per cent to the total sales, he said.
Almost 50 per cent pairs of footwear are ladies shoes and the rest is in the children and men's categories, Kataria said.
Bata India has invested Rs 260 crore during the last three years for modernisation of its manufacturing facilities and renovation of retail stores, he added.
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