After nine years, Zara has formally closed its renowned flagship shop at the historic Ismail Building in South Mumbai. The rapidly expanding luxury apparel business Purple Style Labs has leased the 51,300-square-foot retail building, which is located in the center of the city’s historic Flora Fountain neighborhood. The lease, according to the property registration records uncovered by Propstack.com, lasts for five years and includes an astounding rental agreement worth₹206 crore in total, or₹10 lakh per day.
The acquisition of this large 60,000 square foot (0.56 ha) space by Purple Style Labs, which is well-known for its high-end products sold under the Pernia’s Pop-Up Shop brand, is a step to strengthen its position in Mumbai’s luxury retail industry. Established in 2015 by Abhishek Agarwal, the company has gained notoriety for showcasing upscale Indian designers such as Amit Aggarwal, Falguni Shane Peacock, and Tarun Tahiliani. In 2020, the company further cemented its position as a curator of high-end fashion labels when it proudly purchased Wendell Rodricks’s brand posthumously.
The agreement describes an increasing rental structure and was formally recorded on December 23, 2020. The monthly fee is set at₹3 crore at the beginning and rises annually, reaching₹45.6 crore by the fifth year. Rent for the first year is ₹36 crore, and it will rise in line with the location’s rising demand.
Zara’s decision to leave South Mumbai signifies the conclusion of its nine-year business endeavor in one of the most prestigious areas of the city. When it first opened in 2016, Zara’s South Mumbai flagship was a pioneering decision. However, now that the lease has ended, the Spanish fashion behemoth has turned its attention to other areas of Mumbai. Zara leased the flagship store in the Edwardian Ismail Building for 21 years but decided to end it after only nine of those years. Even while Zara still maintains locations in Lower Parel, Kurla, and Thane, it’s obvious that the retail scene in South Mumbai has evolved.
Industry insiders claim that within the past five years, South Mumbai’s retail landscape has changed dramatically. The once-thriving shopping center is currently grappling with shifting demographics as wealthy shoppers shift to Central Mumbai malls like Palladium in Lower Parel, which attract more foot traffic. On the other hand, South Mumbai’s once-thriving retail scene has diminished.
Arif Fazlani, general director of the Fazlani Group, which owns the Ismail Building, confirmed ZZara’s exit. Purple Style Labs will take over on March 1, 2025. Although the tenant Although the tenancy change signals a shift in retail trends, it also underscores the rapid evolution of Mumbai’s premium retail landscape.
In 2020, Zara, which is controlled by the multinational retail behemoth Inditex SA, joined up with the Tata Group to enter the Indian market. With several sites located throughout Mumbai, the brand has established a strong reputation in India. Its departure from the flagship store in South Mumbai, however, indicates a more calculated shift to areas with higher customer traffic.
Zara’s exit from South Mumbai is viewed as evidence of the intricate nature of retail success as the real estate market changes. A prominent location alone is no longer enough to guarantee success; foot traffic, customer behavior, and regional trends now unquestionably influence the destiny of upscale retail establishments.