What slump? Spanish fashion giant branches out

Spain's Inditex empire, owner of the fashion chain Zara and a fistful of spin-offs, defied market chills last week to launch a high-end accessories chain, Uterqüe.

Two branches opened in Madrid, two in Barcelona and one in Inditex's home town of Coruña, with up to 30 planned for Spain, Portugal and Greece.

Britain must wait for Uterqüe, a Latin word meaning "one and the other". But Inditex continues to conquer Britain's high streets, with the recent introduction of its urban youth chain Pull & Bear, further branches of teen-oriented Bershka, another Zara Home (the sixth) and three more Zaras (58 so far).

Uterqüe in Serrano Avenue exudes the luxury this corner of Madrid commands, but at popular prices. Spare, downlit window displays show chunky handbags, long, buttery leather gloves and trilbies with rakish angles – murmur Gucci rather than Accessorise. But prices are reassuringly Zara: cashmere-mix pashmina: €25 (£20), a Chanel-like quilted bag €119. That hat, €29.

"This range represents high fashion and value for money. It's elegant and comfortable, what we do best," said Intidex's press chief, Raul Estradera. "We've taken special care to create an atmosphere of the highest possible style.

"We spent a long time with our designers developing the collection, and our architects are waiting for the right site," Mr Estradera added. "Demand is rising. The time is ripe." You don't fear a market plunge? Laughter. "No comment."

This is no mere bravado. Competitor Adolfo Dominguez, hurt by the downturn in consumer spending, has slowed expansion plans.

But Inditex's drive to world domination continues unabated, at it seizes market share from smaller players.