Levi's to launch discount line in Europe

US jeanswear giant Levi Strauss&Co has announced plans to launch its Signature discount clothing line in European supermarkets in spring next year. Yhe company said it is set to introduce its this cheaper line onto the shelves of mass channel retailers initially only in the UK, France and Germany. The Signature jeans will sell for about GBP 25, against an average price of GBP 45 for its others.

The move follows its US rollout, where the Signature jeans will be on sale in Wal-Mart from July. According to Levi's, market research showed that fashionable and high quality but moderately priced jeans represented an untapped market. "We will sell the brand where customers really go to shop," Joe Middleton, president of Levi Strauss Europe, said.

The group isn't worried that the new more line may dent the image of its core brand Levi's. "Shoppers will be able to see the difference between Levi's and Levi Strauss Signature at a glance," Mr Middleton stated. Eighteen months ago the San Francisco-based jeans giant won a court battle to prevent UK supermarket group Tesco from selling cut-price Levi's jeans sourced more cheaply from the unapproved "grey market" outside the European Union.

Earlier this week, Levi's revealed it is working on the worldwide roll-out of a new retail concept for girls to compete with companies such as Italian young fashion specialist Miss Sixty. The first store for the new concept, which to date has no name, will open in Paris in August and follows the opening of a test corner at the Paris megastore of French fashion retailer Etam Developpement in March.

San Francisco-based Levi's plans to open a second Levi's girl store by the end of the year to start with the actual roll-out in 2004. According to Levi's France general manager Bernard Didier, there is potential for 30 Levi's girl stores in France alone.