Global fashion brand Zara is planning to open a four-story flagship store in Union Square next year. Why it matters: The retail store previously announced the closure of its current Union Square location at 250 Post St.

Fashion retail giant Zara will not be leaving San Francisco's Union Square after all as the company on Monday confirmed plans for a new flagship store in the shopping district.

Zara is opening a 40,000-square-foot flagship store in San Francisco's Union Square, reversing a previous decision to leave the area and doubling the size of its current location.