Leading footwear retailer Bata India’s shares hit a fresh 52-week low of Rs 1,418.05 per piece on Monday’s continuing its downward trend for the fourth straight day.
Bata’s open footwear business forms a large part of its lower price point portfolio, which has been impacted due to inflation as well as GST. Also, the company has not yet been able to touch its pre-pandemic sales levels, which is contributing too to the drop in the share price.
The company has not taken any price hikes in the last six months, said Gunjan Shah, MD and CEO of Bata India, in an interview with CNBC-TV18 last week.
Shah explained that the company's premiumisation strategy is working well. Revenue has been driven by price points above Rs 1,000 and Rs 2,000, while weak demand has been observed in the below Rs 500 and Rs 1,000 categories.
“The premium section of the business which is in the price points of Rs 1,000, Rs 2,000 and even higher is doing well and is leading the growth for us. However, there is a certain amount of sluggishness that we see in the price points, which are below Rs 1,000 and below Rs 500,” he added.
