Luxury Takeover: Purple Style Labs Replaces Zara in Mumbai’s Iconic Ismail Building
Spanish fashion giant Zara has officially shut down its flagship store located in the 118-year-old Ismail Building at Flora Fountain, South Mumbai. The store, which had been operational for nine years, was closed on February 23.
This marks a significant shift in the retail landscape, as high-end fashion retailer Purple Style Labs has now secured a lease for the same space.
Purple Style Labs Secures 60,000 sq ft Retail Space
Purple Style Labs, a luxury fashion brand founded by Abhishek Agarwal in 2015, has taken over 60,000 sq ft of retail space in the Ismail Building.
According to property registration documents obtained by Propstack.com, the lease is set for five years, with an annual rent of ₹36 crore in the first year. Over the lease period, the total rent amounts to ₹206 crore, with a deposit of ₹18 crore.
The new tenant specializes in luxury fashion and retails high-end designer labels under Pernia’s Pop-Up Shop.
The brand features renowned designers such as Tarun Tahiliani, Falguni Shane Peacock, Amit Aggarwal, Gaurav Gupta, and Wendell Rodricks.
Lease and Rental Details
Purple Style Labs’ lease agreement includes an escalating rental structure:
- Year 1: ₹36 crore annually (₹3 crore per month)
- Year 2: ₹39 crore annually
- Year 3: ₹42 crore annually
- Year 4: ₹43.8 crore annually
- Year 5: ₹45.6 crore annually
The lease was officially registered on December 23, 2025, with a stamp duty of over ₹53 lakh and a registration fee of ₹1,000.
Zara’s South Mumbai Exit: Reasons and Market Insights
Zara had originally secured a 21-year lease for the South Mumbai store, registering the agreement on April 1, 2016. The store occupied 51,300 sq ft across five floors in the Edwardian neoclassical Ismail Building.
When Zara moved in, it paid a monthly rent of ₹2.25 crore and a deposit of ₹13.5 crore. Over the years, the rent increased significantly, reportedly reaching around ₹36 crore per annum, translating to approximately ₹9.86 lakh per day.
According to industry experts, high rental costs were a major factor behind Zara’s decision to shut down this store.
A retail head from an international property consultancy explained, “Nine years is a reasonable period to assess financial sustainability. The affluent South Mumbai demographic has largely shifted to Central Mumbai, particularly Worli and Lower Parel, where they prefer shopping at Palladium Mall.”
Zara Continues Operations in Mumbai
Despite the South Mumbai closure, Zara continues to operate multiple stores across Mumbai, including locations in:
- Palladium Mall, Lower Parel
- Phoenix Market City, Kurla
- Oberoi Mall, Goregaon
- Infinity 2 Mall, Malad
- Viviana Mall, Thane
A notice outside the closed South Mumbai store assured customers: “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 and at Zara.com/in.”
Purple Style Labs’ Expansion and Strategy
Purple Style Labs has been rapidly expanding its presence in India’s luxury fashion market.
The company operates multiple stores in Mumbai, including locations at Kemps Corner, Juhu, and Bandra. Its latest lease at the Ismail Building is part of a broader strategy to solidify its footprint in high-end retail.
The company has gained significant traction since acquiring Pernia’s Pop-Up Shop in 2018 and the Wendell Rodricks brand in 2020.
By incubating young designer labels and offering sales, marketing, and technical support, Purple Style Labs has positioned itself as a key player in India’s premium fashion industry.
What’s Next?
With Zara exiting South Mumbai and Purple Style Labs taking over the prime retail space, the fashion retail landscape in Mumbai is witnessing notable changes.
The upcoming months will determine how Purple Style Labs capitalizes on this high-profile location and whether their luxury retail strategy can thrive in an area previously occupied by one of the world’s biggest fashion brands.
Meanwhile, Zara continues to focus on its more strategically located stores in Mumbai, ensuring its presence remains strong despite exiting this iconic retail space.
