There was a time when a flagship store—perhaps in Mumbai’s Fort area or Kala Ghoda—was the ultimate symbol of retail success. Earlier this month, after eight years, the iconic five-story Zara store in South Bombay shut its doors, unable to sustain the staggering ₹3 crore monthly rent. Housed in the 119-year-old Ismail Building at Flora Fountain, this space once marked one of the largest overseas transactions for a high-street brand.
Yet, as one Zara store exits–its parent company, Inditex, which also owns Bershka expanded its first outlet at Mumbai’s Phoenix Palladium Mall alongside the brand’s online debut in India. While one store exits, another comes along!However, Zara’s flagship store closure is not an isolated case. There are bigger challenges that mid-tier international brands face to sustain themselves in India.
The answer, like all compelling business stories, lies in a mix of shifting consumer behaviour, supply chain disruptions, economic headwinds, and strategic missteps.The rental trapWalk into any of India’s premium shopping malls—Select Citywalk in Delhi, Palladium in Mumbai, Phoenix Marketcity in Bangalore—and you’ll see a similar pattern: mid-tier international brands seem to struggle."High-quality retail spaces in India are limited, driving rentals for prime locations sky-high.
Ultimately, it all comes down to the numbers—whether to operate or shut a store in such a location is purely a business decision,” reasons Ishita Choudhary, .
