Lefties launches in Liverpool as Zara's budget sister brand expands

By Helen Reid

LIVERPOOL, Aug 27 (Reuters) - Lefties opened in Liverpool on Thursday as Zara owner Inditex launched its most affordable brand in the UK, stretching its fashion empire further to meet growing demand from inflation-hit shoppers looking for value.

Selling jeans for £12.99 and T-shirts starting at £3.99, prices Brits are more used to seeing at Primark, Lefties could present a challenge to the Associated British Foods-owned fashion retailer that dominates the budget end of the market in the UK.

As Inditex has revamped Zara stores and pushed into higher price levels, the international rollout of Lefties is the Spanish group's way of ensuring it does not lose out among more cost-conscious consumers.

"Lefties feels like it is for people who want to wear Massimo Dutti, who want to wear Zara, but can't always afford it," said Christina Herbach, retail strategist and founder of SPEL Studios, noting that Lefties' website has a similar feel to Zara's with a focus on style rather than price.

Lefties is part of Inditex's strategy to bring new customers into its network of eight fashion brands, giving them options to trade up while also catering to growing numbers of shoppers who are not loyal to any one brand and might mix budget and high-end items, she said.

Zara's cheapest pair of jeans costs £27.99 ($37.86), and its cheapest dresses are £22.99 - compared to £9.99 at Lefties. The brand, which started as a Zara outlet, also helps Inditex respond to Shein's permanent discounts, which have reset price expectations for many European shoppers.

"As one of the world's leading fashion retail markets, the UK is a natural next step offering an exciting destination for our brand," Xavier Ruz Riera, general director of Lefties said in a statement.

INDITEX MARKET VALUE OVERTAKES HERMES

Inditex shares hit a record high earlier this month and its market value reached €182 billion, overtaking luxury giant Hermes as growth slows at the high-end brand while Zara captures more aspirational luxury shoppers who have been priced out.

But Lefties is the only Inditex brand increasing store numbers as Zara shuts peripheral locations to focus on sprawling stores in prime spots. Inditex also owns Bershka, Pull & Bear, Stradivarius, Oysho, Zara Home and Massimo Dutti.

Lefties has 225 stores worldwide, while Zara has nearly 1,495. The UK is its 20th market globally, after it opened in France in May.  

($1 = 0.7392 pounds)

(Reporting by Helen ReidEditing by Tomasz Janowski)