Zara goes online to expand reach

Fashion label Zara has launched its first web-based stores. The label's Spanish owner Inditex has launched Zara online in Britain, Spain, Portugal, France, Italy and Germany, with plans to extend the roll-out later to the Americas and Asia.

The group, which also owns "preppie" brand Massimo Dutti and teen label Bershka, has plans to extend its online presence to the key markets of the United States, Japan and South Korea next year. The effect on top line growth is likely to be significant.

"I think it's material," said Anne Critchlow, retail analyst at Societe Generale, noting that Zara accounted for some 30 per cent of Inditex group sales in the six countries in the online launch.

"It's enough for investors to notice," she added.