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Spanish fashion giant Zara has shut down its flagship store in Mumbai’s Fort area after eight years, leaving social media users stunned by its exorbitant rent of ₹3 crore per month. The store, located in a 119-year-old building, was one of Zara’s most prominent locations in India.
High Rentals Behind Store Closure
Zara had leased the property in 2016 for a 21-year tenure, initially paying ₹2.25 crore per month. The agreement included a clause for a 5% annual rent increase after the first three years, pushing the monthly cost to ₹3,01,52,152 (₹36.18 crore per annum) by the time of closure. According to Business Standard, the store was shut down because its sales could not justify the skyrocketing rental expenses.
A notice posted outside the store confirmed the closure, stating, “Please be informed that this Zara store will cease operations after the end of business on February 23. We will continue to assist you at all our Zara stores in Mumbai.”
Social Media Reacts to Massive Rent
The closure of Zara’s South Mumbai store sparked widespread discussion online. Many users were astonished by the rent figures, with one commenting, “Are you kidding me?” Another noted, “Mumbai rentals are crazy! This will be the fate of many quick commerce dark stores after a while.”
Some users defended the high rental price, arguing that such prime locations serve more as branding hubs than profit-making outlets. A user wrote, “The place was iconic. Totally worth it. Whenever I went, it was full. Rent wasn’t a problem in that location.”
New Tenant to Take Over the Space
Following Zara’s exit, Pernia’s Pop-Up Shop will take over the prime real estate. The luxury multi-designer retail brand initially sought a 15-year lease but is likely to finalize an agreement in multiples of five years.
Sources By Agencies
