Zara shuts down its iconic 5-storey flagship store in Mumbai

High-street luxury fashion brand Zara closed its flagship Mumbai store on Monday morning, located in the iconic, 110-year-old heritage-listed Ismail Building in South Bombay.

Opened in May 2017, the global fast-fashion retailer’s standalone store spanned 51,300 square feet across five floors in the bustling business district of Flora Fountain. The flagship store was a go-to destination for Mumbai’s fashionistas and elite shoppers. It was reportedly the largest overseas space-related transaction by a high-street brand.

The store had put up a sign announcing its closure, stating: 'Please be informed that this Zara store will cease operations after the end of business on 23rd February…’ Media reports reveal that the store's sales were insufficient to cover the high rental costs, which were approximately Rs 3 crore per month.

Meanwhile, India's luxury brand Sabyasachi's flagship store, spanning four floors and 25,862 square feet, is housed in a majestic neoclassical landmark built in the Italianate revival tradition. Located just off Horniman Circle in South Mumbai's heritage district, it sits near the now-closed Zara store.

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

Last year, the global fashion powerhouse announced a major restructuring plan, leading to the closure of 1,200 stores worldwide as it shifts towards a more digitally driven future.

According to a Hindustan Times report, the Ismail Building will now be home to 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 showcases more than 500 of India’s leading designer brands.

Despite the closure, the brand 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.