Rewa Today Desk : Spanish fashion giant Zara has officially closed its flagship store in Mumbai, ending an eight-year presence at the iconic Ismail Building in the Fort area. The 51,300-square-foot store, which opened in 2017, ceased operations on February 23, 2025.
A notice posted outside the store informed customers of the closure: “Please be informed that this Zara store will cease operations after the end of business on 23rd February. We will continue to assist you all at our Zara stores in Mumbai and at Zara.com
High Rental Costs Leading to Economic Unfeasibility
The primary reason behind the closure appears to be the high rental costs associated with the location. In 2017, Zara entered into a lease agreement with an annual rent of ₹30 crore, making it one of the largest retail lease transactions in India’s fashion industry at that time. Over time, these costs became economically unfeasible, leading to the decision to shut down the store.
Zara’s Continued Presence in Mumbai
Despite the closure of this flagship outlet, Zara maintains a significant presence in Mumbai. The brand continues to operate stores in prominent shopping malls, including Phoenix Palladium in Lower Parel, Phoenix Market City in Kurla, and Viviana Mall in Thane. This strategic shift aligns with Zara’s global approach of focusing on store locations within shopping malls and strengthening its online business.
Global Strategy and Digital Emphasis
The closure reflects a broader trend in Zara’s global strategy, where the company is reevaluating its retail footprint to adapt to changing consumer behaviors. By focusing on mall-based stores and enhancing its digital presence, Zara aims to optimize operational efficiency and meet the evolving demands of its customers.
while the closure of the flagship store marks the end of an era for Zara in Mumbai’s Fort area, the brand remains committed to serving its customers through other outlets and its online platform.
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