Feb 25, South Bombay: After eight years of operation, Zara has closed its flagship store in Mumbai’s historic Ismail Building at Flora Fountain. The five-story, 51,300-square-foot outlet, inaugurated in 2017, ceased operations on February 23, 2025, due to escalating rental costs. Initially, Zara’s parent company, Inditex Trent—a joint venture between Spain’s Inditex and India’s Tata Group—leased the space in 2016 for ₹2.25 crore per month, with a 5% annual increase after the first three years. By 2025, the rent had risen to approximately ₹3 crore monthly, making the store economically unviable.
A notice posted at the store informed customers of the closure and directed them to other Zara locations in Mumbai and the brand’s online platform. Despite the flagship store’s shutdown, Zara maintains its presence in the city with outlets in Phoenix Market City (Kurla), Phoenix Palladium (Lower Parel), and Viviana Mall (Thane).
The Ismail Building, a 119-year-old Edwardian Neo-Classical structure, underwent a two-year restoration before Zara’s occupancy, preserving its colonial-era architectural charm. Following Zara’s departure, luxury fashion retailer Purple Style Labs has leased the 60,000-square-foot space for an annual rent of ₹36 crore, with plans to house Pernia’s Pop-Up Shop.
This development reflects a broader trend in the retail industry, where brands are reassessing the viability of large physical stores amid rising operational costs and a shift towards online shopping. Zara’s strategic focus appears to be on strengthening its digital presence and optimizing resources across more economically sustainable locations. Keep Reading Questiqa.in and
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