Italy's number one in ready fashion or "pronto moda", Teddy SpA, has announced it wants to expand its Terranova retail chain in France and Germany next year.

The Rimini-based company, second only to Benetton in Italy's clothing retail sector, has operated pilot stores in Düsseldorf and Lünen for one year with its fashion ranges targeted at the same female customers of Spanish rival Zara.

Teddy currently operates 250 stores in 22 countries and plans to expand that number to 520 in the next four years.

The Terranova chain's turnover is expected to reach 150 million euros this year, with about 30 per cent of that being generated outside of Italy. That figure is expected to grow to 300 million euros by 2005.