Spanish retail giant Zara has shuttered its expansive 51,300-square-foot flagship store in Mumbai. This store was prominently situated in the historic Ismail Building, located in the Fort area.
Zara did not specify a reason for the closure. However, a notice posted outside the store read, “This Zara store will cease operations after the end of business on 23rd February. We will continue to assist you at our other Zara stores in Mumbai and at Zara.com/in.”
According to reports, Zara had leased the store in 2017 at a monthly rent of Rs 2.25 crore, translating to an annual expense of Rs 27 crore. Information sourced from real estate data analytics platform CRE Matrix indicated that the initial five months of the lease were rent-free. Additionally, after completing three years of the 21-year lease tenure, the rent was set to increase by 5% annually.
At the time of closure, Zara was reportedly paying approximately Rs 36 crore per year, which breaks down to around Rs 9.86 lakh per day. This high rental cost is believed to be the primary reason behind the decision to close the store.
