Zara, the popular Spanish retail giant, has closed its flagship store in the heart of South Mumbai after operating for eight years. The 51,300 sq ft store, located in the iconic 118-year-old Ismail building at Flora Fountain, has made way for a new luxury fashion brand, Purple Style Labs. This move marks the end of Zara’s presence at the prominent location in Mumbai’s Fort area, one of the city’s most renowned commercial hubs.
Zara Exits South Mumbai: A Strategic Decision
Zara initially leased the Ismail building’s space in 2016 for a 21-year term. However, after operating for just nine years, the company has decided to close its doors at this flagship location. The store, which became an iconic part of the city’s fashion scene, will cease operations on February 23, 2025. Zara has assured its customers that they can continue to shop at other Zara stores across Mumbai, such as those in Lower Parel, Kurla, and Goregaon.
While Zara’s South Mumbai store closed after nine years, the company will continue its operations in other parts of the city. It’s important to note that Zara, a subsidiary of global retail conglomerate Inditex SA, has a strong presence in the Indian market, including its joint venture with the Tata Group under the name Inditex Trent Retail India. The company operates multiple brands, including Zara and Massimo Dutti, in India.
Purple Style Labs Takes Over the Space
Purple Style Labs, a luxury fashion brand with existing stores in Mumbai’s upscale areas like Kemps Corner, Juhu, and Bandra, has now leased the 60,000 sq ft retail space left by Zara. Purple Style Labs has secured the lease for five years, with a staggering rent of Rs.206 crore for the duration. This equates to a daily rent of Rs.10 lakh.
According to property registration documents, the lease was formalized with a deposit of Rs.18 crore. The rent for the first year will be Rs.36 crore, followed by annual increases, with the rent reaching Rs.45.6 crore in the fifth year. The luxury brand is making a significant investment in the heritage building, known for its Edwardian neoclassical architecture.
Why Did Zara Leave South Mumbai?
Retail experts suggest that a combination of financial and strategic factors influenced Zara’s exit from South Mumbai. Despite its iconic location, the store struggled with foot traffic and changing demographics. Over the years, South Mumbai has witnessed a shift in its consumer base, with many affluent shoppers now frequenting Central Mumbai malls like Palladium Mall in Lower Parel, which offers greater accessibility and higher foot traffic.
A retail expert explained, “Zara may have assessed its store’s long-term viability in South Mumbai and decided that the location no longer aligns with the company’s business objectives.” With the growing preference for high-end shopping destinations in newer areas, such as Worli and Lower Parel, Zara chose to focus its efforts on locations offering better opportunities for growth.
Purple Style Labs: A Growing Luxury Presence
Purple Style Labs is quickly gaining traction in the luxury fashion space and is expanding its retail footprint in Mumbai. The new store in the Ismail building is expected to draw more high-end shoppers to the area. With its upscale offering and premium positioning, Purple Style Labs aims to tap into the city’s growing luxury retail market.
The shift in tenant from Zara to Purple Style Labs signals the transformation of South Mumbai as a key destination for luxury retail. It also reflects the broader trends in consumer behavior and the increasing importance of foot traffic and location selection in the retail industry.
Zara’s closure of its flagship store in South Mumbai after nearly a decade marks a significant change. Purple Style Labs, with its luxury offerings, is set to lead a new wave of shoppers. The historical Ismail building will now attract a new demographic with Purple Style Labs. While Zara exits South Mumbai, it will continue thriving in other parts of the city. The brand will adapt to shifting trends and consumer preferences.
As retail dynamics evolve in Mumbai, the entry of Purple Style Labs in this prime location may redefine luxury shopping in the area for the coming years.
