High-street luxury fashion brand Zara shut down its flagship store in Mumbai on Monday morning. The store was situated in the historic, 110-year-old Ismail Building, a heritage-listed structure in South Bombay.

Launched in May 2017, the standalone store covered 51,300 square feet across five floors in the bustling Flora Fountain business district. It was a popular destination for Mumbai’s fashion-conscious and elite shoppers and was reportedly the largest overseas space-related transaction by a high-street brand at the time.

A sign at the store announced its closure, stating: “Please be informed that this Zara store will cease operations after the end of business on 23rd February…” Media reports suggest that the store’s sales could not cover the high rental costs, which were around Rs 3 crore per month.

Meanwhile, Indian luxury brand Sabyasachi’s flagship store, spanning four floors and 25,862 square feet, is located nearby in a grand neoclassical building designed in the Italianate revival style. Situated near Horniman Circle in South Mumbai’s heritage district, it stands close to the now-shuttered Zara store.

Zara’s operations in India are managed by Inditex Trent, a joint venture between Spain’s Inditex and the Tata Group’s retail arm, Trent. The company paid an annual lease rent of Rs 30 crore for the flagship store to its owner, Supariwala Exports. The lease agreement was for 15 years, with a five-year lock-in period.

Last year, the global fashion giant announced a significant restructuring plan, which included closing 1,200 stores worldwide as part of its shift toward a more digitally focused strategy.

According to a *Hindustan Times* report, the Ismail Building will now house Pernia’s Pop-Up Shop. Founded in 2012 by Indian-American fashion entrepreneur Pernia Qureshi as a luxury fashion e-commerce platform, the brand was acquired by Purple Style Labs in 2019. Today, it features over 500 leading Indian designer brands.

Despite the closure of its flagship store, Zara continues to operate three other outlets in Mumbai and Thane—located at Phoenix Market City in Kurla, Phoenix Palladium in Lower Parel, and Viviana Mall in Thane.

Author: Ekta Bhurat