High rental costs cited as global fashion giant closes Fort outlet
Spanish fashion brand Zara has closed its flagship store in South Mumbai’s Fort area after eight years of operation. The sudden closure has sparked discussions online, with a notice posted at the store’s entrance going viral on social media.
The store, housed in a historic building near the Horniman Circle, was one of Zara’s most prominent outlets in India. Reports indicate that the company was paying a staggering ₹3 crore in monthly rent, making it one of the most expensive retail spaces in the country. The high costs, combined with changing retail dynamics and shifting consumer preferences, are believed to be key factors behind the decision.
Zara, owned by Inditex, entered the Indian market in 2010 through a joint venture with the Tata Group’s Trent Ltd. While the brand has maintained strong sales across India, rising rental costs in prime locations have led to strategic changes in store locations.
Despite the Fort store’s closure, Zara continues to expand in India, focusing on high-footfall malls and online sales. The company has not issued an official statement on the shutdown, but sources suggest that the brand is looking to optimize its presence in the country’s evolving retail landscape.
The closure has drawn mixed reactions, with loyal customers expressing nostalgia for the iconic outlet, while others acknowledge the financial challenges of maintaining such a high-cost space.
