Blog: Levi's jeans join Tesco's 'it' list
Leonie Barrie | 15 April 2004
Tesco and Levi Strauss seem to have forgotten their long-standing legal wrangle over cut-price jeans – all in the name of commerce. Two years ago, the British High Court ruled against Tesco’s attempts to sell cheap Levis sourced from the so-called “grey market” outside Europe. But over the past few days the two companies have put on a united front as Tesco’s UK stores have rolled out Levi’s low-price Signature clothing range and watched the pounds roll in.
Despite initial scepticism about its decision to launch into the cheapest end of the market, Levi’s Signature range seems to be one of the few bright spots for the iconic jeans maker at the moment. Yesterday the company posted a narrowed quarterly loss – down to $2 million against a net loss of $58 million last year – boosted, it said, by the Signature line. Although Levi’s says fears that the Signature range would cannibalise sales of its other products are unfounded, it’s perhaps telling that the core Dockers and Levi's brands are still on the decline.
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