Peacocks is ramping up its fashion credentials with a trend-led collection for Christmas that distances the value retailer from its commodity-focused past.

Managing director Tim Bettley said he is looking for “big growth” from fashion this festive season, with a more on-trend collection in stores.

Peacocks has signed Storm model Rachel Alexander, who appears in campaigns for Dolce & Gabbana and Liberty, to model its Christmas collection.

The move is part of the retailer’s drive to increase its fashion reputation, which began with a£21.5 million investment this year to open fashion concept stores.

The retailer’s transactional web site, which launched at the end of August with 150 lines from its top-end womenswear capsule range, is set to generate a top store’s turnover within two years.

Lingerie will be added to the site in two weeks, with accessories such as handbags, belts and scarves to follow. Menswear and childrenswear will be added towards the end of 2008.

Bettley said Peacocks will benefit from the economic downturn in the run-up to Christmas. “It helps the value market. The mid-market will find it difficult,” he said.

The retailer is meeting with its overseas partners to push international expansion.