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A closure notice, posted on social media, confirmed the shutdown of the 51,300-square-foot premises. According to the notice on the store’s entrance, no specific reason was given for the closure.
“Please be informed that this Zara store will cease operations after the end of business on 23rd February. We will continue to assist you all at our Zara stores in Mumbai and Zara.com/in,” it read.
Inditex SA, Zara’s parent company, operates in India through a joint venture with Tata Group’s Trent. As per the reports, Inditex Trent acquired the building on lease in 2017 and paid an exorbitant ₹30 crore rent yearly with a five-year lock-in period.
Opened in 2017 at Hatuma Chowk Square (Fort area), it was the largest Zara outlet in the country and the only standalone store in Mumbai. Ahead of the opening of the store, several local architects worked with Zara’s in-house architecture team for two years to restore the space.
According to a registration document obtained by Business Standard, the lease was signed for 21 years and officially registered on April 1, 2016. The company paid a monthly rent of ₹2.25 crore for the store and a deposit of ₹13.5 crore.
The store’s sales were insufficient to cover the high renting costs, revealed a source familiar with the matter, reported Business Standard.
Zara entered India in 2010 through a joint venture with the Tata Group. Apart from the closed store, the company currently has three other outlets in Mumbai and Thane at Phoenix Palladium (Lower Parel), Viviana Mall (Thane) and Phoenix Market City (Kurla).
(Edited by : Sudarsanan Mani)
