India, Feb. 25 -- Fast-fashion brand Zara has shut down its flagship store in South Mumbai's historic Ismail Building, as it could not afford the rental costs associated with the prime retail space.

Zara leased the space in 2017, for an astonishing Rs.2.25 crore per month in rent for the 51,300 sq ft space, amounting to Rs.27 crore annually, as per details sourced from real estate data analytics platform CRE Matrix. The initial five months were free of rent. On completing three years of the 21-year lease tenure, the rent escalation was 5% per annum.

According to this calculation, Zara was paying nearly Rs.36 crore a year, which translates to Rs.9.86 lakh a day.

This high rental expense ultimately contributed to the brand's decision to ...