25 February 2025, Mumbai
Zara has closed its flagship Mumbai store at the historic 110-year-old Ismail Building in Fort. Opened in 2017, the 51,300 sq ft outlet at Flora Fountain was a hotspot for fashion lovers. The brand, operated in India by Inditex Trent, paid Rs 30 crore annually in rent.
Shoppers visiting the store were caught off guard by its sudden closure, with a notice announcing that operations ceased on February 23. Declining footfall and the growing dominance of e-commerce drove Zara’s decision to shut the outlet and shift focus toward digital innovation. The company is now investing in augmented reality fitting rooms and AI-powered recommendations to enhance the shopping experience.
The move aligns with Zara’s global restructuring, which saw 1,200 store closures. The fashion giant is pivoting towards online growth, a trend accelerated by changing consumer behavior and supply chain disruptions.
Additionally, the shutdown of garment factories in Bangladesh home to Inditex’s major suppliers is disrupting global fashion production. With 150 suppliers and 273 factories in Bangladesh, employing nearly 10 lakh workers, the impact is significant. As traditional retail evolves, Zara is adapting to a digital-first future.
