The move comes just months after Tesco vowed to continue to sell branded goods at discount prices, despite November's European court victory for Levi Strauss. Levi's successfully stopped Tesco from selling Levi's-branded clothing bought on the "grey market", overseas markets where the clothing is cheaper.
John Hoerner, chief executive of Tesco clothing, said: "Our customers tell us they want to the buy latest fashions from us. They want top quality clothes that look good and are up to date, from a recognisable brand. Cherokee has stormed ahead in the American market because it has listened to its customers and given them what they want."
Hoerner was hired by Tesco in July last year to improve the chain's clothing range. He was previously chief executive of Arcadia, the fashion retail group that owns stores such as Top Shop and Miss Selfridge.
Cherokee clothing is sold in Target discount chains in the US and Zellers in Canada and sales have risen from $480m (£328m) to $2.2bn over the past five years.
The Cherokee range at Tesco will include fashion and casual wear for men, women and children, along with footwear and accessories. The clothes will be stocked alongside existing Tesco clothing ranges nationwide.
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