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Next and Asda are locked in a legal battle over claims that Britain's second-biggest supermarket chain has copied the fashion retailer's clothing designs.
Next is suing the supermarket group in the High Court in the latest of a series of high-profile copycat rows between high street companies.
It claims that Asda's George business has infringed its design rights on five items of children's clothing - boys' lined jeans, light glory jeans, retro bomber jackets, cork-bed sandals and navy trekker sandals.
The move comes amid some of the toughest trading conditions on the high street for a decade and reflects the desperation of retailers to have the latest fashions on their shelves.
Clothing retailers have been among the hardest hit by the downturn in consumer spending and they have suffered their worst sales in April for eight years.
After admitting that the business lost its way last year, Asda has vowed to make George the largest clothing retailer in the country by volume, toppling Marks & Spencer by 2011.
A spokeswoman for Next refused to comment.
Asda said: “We pride ourselves on the quality of our design. We have received proceedings from Next and we are currently looking into these allegations.”
The legal action marks the second time in a matter of weeks that Next, the second-biggest clothing retailer in the UK, behind M&S, has taken a rival to court. It emerged this month that Next had issued proceedings against Home Retail Group, the owner of Argos, alleging that it copied designs in its childrens' bedroom furniture range.
One legal expert said that despite the number of High Court cases over the past year between clothing retailers, it was rare for battles to erupt between the UK's larger chains.
“Typically, you find things are resolved before they get to this stage,” he said. “It's perhaps a sign of the credit crunch. People feel they have to do more to protect their sales.” He added: “You normally find Next on the other side, as they haven't been the most innovative retailer of late.”
The push by supermarkets into clothing has transformed the industry. Asda introduced George in 1990 and until last year it was the country's biggest value clothing retailer ahead of Primark, with promotions such as a £15 tuxedo and £5 office outfits.
Anthony Thompson, a former director of M&S, was hired last September to run George after Asda admitted it had made a mistake by trying to attract younger customers.
Both Primark and Tesco overtook the brand in terms of market share last year. Two months ago, outlining his plans for a revival, Mr Thompson said: “We feel we have taken our foot off the gas a little. Tesco has inched ahead of us and it's not acceptable.”
Three weeks ago, Next said that like-for-like sales in the first half were likely to be down by 7 per cent. Simon Wolfson, chief executive, last year vowed to “bring the magic back” but admitted recently there was little sign of a high street upturn. He said: “It's not a matter of perception. The problems with the economy are rooted in reality, higher mortgage bills, food bills, fuel bills, increased taxes. That is not a question of how people feel, but the income they have got to spend.”
On the defensive
August 2007 Lacoste sues Next for copying its Rotate shoe
September 2007 Primark sues Esprit, claiming it has copied its “Rebel” logo
September 2007 Karen Millen, Whistles and Coast sue Dunnes, the Irish retailer, alleging it has produced and sold “rip-off” copies of its designer garments
April 2008 Ashley Wilde, the boutique design house, threatens to take Primark to court for copying its bed linen
May Next sues Home Retail over alleged design infringement on children’s bedroom furniture
May Next sues Asda, claiming the supermarket has copied children’s clothing
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