Reports suggest that the Spanish fashion giant decided to exit the location as soaring rent costs
Bengaluru: Inditex-owned global fashion retailer Zara has shut down its sole standalone store in Mumbai, which was housed in the historic Ismail Building at Flora Fountain in South Mumbai, according to media reports.
This iconic five-story flagship outlet, which marked Zara’s first store in Mumbai, had been operational since 2017.
A notice displayed at the store’s entrance informed customers: “This Zara store will cease operations after the end of business on 23rd February. You can continue shopping at our other Zara stores in Mumbai or online at Zara.com/in.”
Zara made its debut in the Indian market in May 2010 through a joint venture between its parent company Inditex and Indian conglomerate Tata Group, forming Inditex Trent, where Inditex holds a 49% stake in Zara India.
Reports suggest that the Spanish fashion giant decided to exit the location as soaring rent costs, reaching Rs 3 crore per month, rendered the space financially unsustainable.
Inditex Trent had invested Rs 35 crore in renovating and designing the store’s interiors. Additionally, the company had agreed to an annual rent of Rs 30 crore, marking one of the largest lease deals for a high-street fashion brand at the time, as per media reports.
According to a report by Hindustan Times, the Ismail Building will soon be occupied by Pernia’s Pop-Up Shop.
Established in 2012 by Indian-American fashion entrepreneur Pernia Qureshi, Pernia’s Pop-Up Shop initially operated as an online platform for designer fashion. In 2019, Qureshi handed over the brand to Purple Style Labs, which now showcases collections from over 500 leading Indian designers. The company has leased the South Mumbai space for Rs 36 crore per year, says media reports.
