Zara shuts down iconic SoBo store in Mumbai; was paying Rs 3 crore as rent per month
PTC Web Desk: Spanish fashion giant Zara has permanently closed its well-known SoBo store in Mumbai’s Fort area after eight years of operation. A notice posted outside the store has gone viral on social media, leaving many shoppers surprised.
One of the biggest reasons behind the closure appears to be the skyrocketing rent. Reports suggest that Zara had leased the property in 2016 for 21 years, initially paying Rs 2.25 crore per month. The rent was free for the first five months, but after the initial three years, it started increasing by 5% every year. Currently, the rent had touched a whopping ₹3.01 crore per month, amounting to nearly Rs 36.18 crore annually.
Despite being a globally recognised brand, Zara’s sales reportedly couldn't keep up with such high operational costs, leading to the difficult decision to shut down the store.
A notice outside the store informed customers about 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."
Though this location is closing, Zara remains a strong presence in Mumbai, with other stores available for shoppers. However, the shutdown of such a major store raises questions about the rising costs of running businesses in prime locations.
- With inputs from agencies
