Zara Closes Mumbai Store Due to High Rent

Published Date : 25/02/2025 

Spanish fashion giant Zara has shuttered its 51,300-square-foot flagship store in Mumbai, citing high rental costs as the primary reason. The store, located in the historic Ismail Building, was leased for a hefty Rs 36 crore annually, making it one of the most expensive retail spaces in the city. Despite this closure, Zara continues to operate in other locations across Mumbai and Thane. 

Spanish fashion brand Zara has announced the closure of its flagship store in Mumbai, a significant move that reflects the challenges faced by retailers in high-rental areas.

The store, located in the historic Ismail Building in the Fort area, was a prominent landmark, spanning an impressive 51,300 square feet.

While Zara did not provide a specific reason for the closure, a notice outside the store read, \ 

Frequently Asked Questions (FAQS):

Q: Why did Zara close its flagship store in Mumbai?

A: Zara closed its flagship store in Mumbai primarily due to the high rental costs. The store was located in the historic Ismail Building and was leased for Rs 36 crore annually, which translated to Rs 9.86 lakh per day.

Q: What was the size of the Zara flagship store in Mumbai?

A: The Zara flagship store in Mumbai was 51,300 square feet, making it one of the largest retail spaces in the city.

Q: What other Zara stores are operational in Mumbai and Thane?

A: Zara continues to operate in Phoenix Market City (Kurla), Phoenix Palladium (Lower Parel), and Viviana Mall (Thane) in Mumbai and Thane.

Q: Who is operating the Ismail Building space now?

A: Luxury fashion house Purple Style Labs has leased the 60,000-square-foot space in the Ismail Building for Rs 36 crore annually, securing a five-year lease.

Q: Is Zara planning to close more stores in India?

A: There is no indication that Zara is planning to close more stores in India. The brand continues to operate in other locations and remains committed to the Indian market. 

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