Tesco vows to fight on for discount brands

by Sylvia Westall,, Brand Republic 20-Nov-01, 12:50

LONDON - Tesco has vowed to continue to sell branded goods at discount prices despite today's surprise European court victory for Levi Strauss, which was condemned by the Consumer's Association.

The European Court of Justice gave Levi's the right to limit imports of its jeans from the "grey market".

John Gildersleeve, director of Tesco, said, "Customers will be dismayed that once again the European Court has failed to loosen the shackles and allow us to bring in the products they want. To pay 100% price for 100% property, and yet not have the right to sell on, is an astonishing commercial decision. No rational trademark system would allow this to happen."

He added, "Customers tell us loud and clear that they want better value on big brands. We've already brought them some great deals, but there are hundreds still beyond our reach. We're working with our hands tied behind our backs."

Tesco has also announced plans to fill its stores with £150m worth of discounted designer goods in the run-up to Christmas. It has also put £1.5m worth of cut-price Veuve Cliquot champagne on sale "to cheer up customers".

The Consumers Association has also hit back at Levi's and the court ruling. It said, "Tesco bravely challenged this profoundly anti-consumer piece of European law. The brand owners may have won this battle against consumer interest, but the fight will go on."

The Consumer's Association is disappointed by today's decision to allow Levi's to continue to effectively overcharge UK customers."

The association plans to lobby the EU and the UK government and Tesco has written in protest to Patricia Hewitt, secretary of state for trade and industry, and plans to campaign against the ruling.

This morning, the European Court of Justice finally brought an end to the three-year court case by ruling that Levi's had the right to limit imports of its jeans from outside the EU. Today's decision has come as a shock for Tesco, which had expected to win the case.

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