Zara’s Exits South Mumbai: Purple Style Labs Secures ₹206 Crore Lease for Iconic Heritage Retail Space

Spanish fashion retailer Zara has shut down its only independent store in South Mumbai's Fort area after nine years. The heritage store was located in the 118-year-old Ismail Building at Flora Fountain. Luxury fashion brand Purple Style Labs (PSL) has now leased the 60,000 sq ft retail space for a five-year period at an estimated cost of ₹206 crore.

Lease Terms and Financial Breakdown

According to property registration documents obtained from Propstack.com, PSL has agreed to an annual rent of ₹36 crore for the first year, translating to a daily rent of ₹10 lakh. The rent is set to increase each year, reaching ₹45.6 crore in the final year of the lease. The deposit for the transaction is ₹18 crore, with a stamp duty payment of over ₹53 lakh and a registration fee of ₹1,000.

The lease agreement was registered on December 23, 2025, confirming the new tenant’s occupancy starting March 1, 2025. The deal represents one of the largest retail lease transactions in the area, underscoring the growing demand for high-end fashion retail spaces in Mumbai’s premium shopping districts.

Purple Style Labs: Expanding Footprint in Luxury Fashion Retail

Purple Style Labs, Founded by Abhishek Agarwal in 2015, operates under the Pernia’s Pop-Up Shop brand. The company retails high-end designer labels, including Tarun Tahiliani, Falguni Shane Peacock, Amit Aggarwal, Gaurav Gupta, Seema Gujral, Abhinav Mishra, and Shyamal & Bhumika. PSL has built a reputation for curating and promoting luxury fashion brands, supporting both established and emerging designers through marketing, sales, and technical assistance.

PSL's acquisition of Pernia’s Pop-Up Shop in 2018 enabled it to expand its presence in India’s growing luxury retail market. The company has been focused on increasing its retail footprint, with stores already operating in Mumbai at locations such as Kemps Corner, Juhu, and Bandra. The new store in the Ismail Building marks its largest retail space in the city, solidifying its position as a leading luxury fashion retailer in India.

In 2020, PSL further expanded its portfolio by acquiring the Wendell Rodricks brand, a well-known name in the Indian fashion industry. This acquisition allowed the company to diversify its offerings and strengthen its presence in the designer fashion segment. The company’s business model focuses on bridging the gap between high-end designers and consumers through an omnichannel approach that combines physical stores with a strong online presence.

Zara’s Closure: A Strategic Shift in Retail Presence

Zara had leased the space in the Ismail Building on April 1, 2016, for a tenure of 21 years but decided to exit after nine years. At the time of leasing, the company paid ₹2.25 crore as rent and a deposit of ₹13.5 crore for 47,565 sq ft of space.

Zara is operated in India through a 65:35 joint venture between Inditex SA and Tata Group’s Trent. The company continues to maintain its presence in Mumbai at locations such as Palladium Mall in Lower Parel, Phoenix Market City in Kurla, Oberoi Mall in Goregaon, Infinity 2 Mall in Malad, and Viviana Mall in Thane.

While Zara has been a popular choice for shoppers in India, its decision to close the South Mumbai store reflects strategic considerations regarding profitability and location efficiency. The Fort area, once a prime retail destination, has seen a shift in consumer foot traffic toward newer retail hubs in Central Mumbai.

Why Did Zara Leave South Mumbai? Key Factors Behind the Decision

Retail experts suggest that location alone does not determine a store’s success. Financial viability and foot traffic are key factors. A property consultancy executive stated that Zara’s target customers in South Mumbai have increasingly shifted towards Central Mumbai, particularly Worli and Lower Parel, where they frequent Palladium Mall.

Experts believe that Palladium Mall offers a more favorable shopping environment with a larger concentration of premium brands, making it a preferred destination for high-end shoppers. As a result, maintaining a standalone store in South Mumbai may not have been as profitable for Zara compared to operating within an established luxury shopping destination.

Arif Fazlani, Managing Director of the Fazlani Group, which owns the Ismail Building, confirmed Zara’s exit. He stated that Zara would hand over the premises by the end of February, and PSL would take possession in March 2025.

The exit of Zara from this heritage building also reflects a broader trend where international brands are reassessing their retail footprint in India. Rising rental costs, evolving consumer preferences, and the increasing popularity of online shopping are all influencing retail leasing decisions.

The leasing of the Ismail Building space to Purple Style Labs signals a shift in the type of brands willing to invest in standalone retail locations in South Mumbai. While fast fashion brands like Zara are consolidating operations in major malls, luxury fashion houses appear to be capitalizing on the opportunity to establish a presence in iconic heritage locations.

PSL’s decision to lease the space suggests confidence in the demand for luxury fashion in the region. With a curated approach to designer fashion, PSL may attract a niche clientele willing to shop in South Mumbai despite the shifting retail dynamics.

As Mumbai's retail market continues to evolve, the focus is likely to remain on high-footfall areas and mixed-use developments that integrate shopping, dining, and entertainment. The success of PSL in this location will be closely watched by industry analysts as an indicator of the viability of standalone luxury fashion stores in heritage buildings.

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