Tesco takes on Next with Cherokee deal

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Tesco has secured an exclusive supply deal with the fast-growing US clothing brand Cherokee in a move that the supermarket hopes will help it win market share from the high street clothing retailers Next and Gap.

Supermarket companies are increasingly moving into higher margin non-food products and Tesco is fighting for clothing market share alongside its rivals Sainsbury's Jeff Banks range and Asda's George label – which pioneered the idea in the UK of shopping for clothes and food at the same time.

The Cherokee casual clothing collections, designed specially for the UK market, will be in Tesco stores from the autumn and the look will compete head on with high street retailers such as Gap and Next, the grocer said. The supermarket said the range would include fashionable and casual clothes for men, women, children and babies.

"Cherokee have stormed ahead in the American market because they have listened to their customers and given them what they want," said John Hoerner, the chief executive of Tesco clothing.

Cherokee quadrupled sales in the last five years in the US and Canada to $2.2bn in 2002, from $480m in 1997. It also has a partnership with the French supermarket chain Carrefour.

Tesco said the partnership represented a significant development in supermarket fashion as it was the first time a major US clothing brand has chosen this route to compete in the British fashion market.