The development marks a victory for retailers in the ongoing battle to sell branded goods sourced from outside the European Union.
Asda has signed a deal with Inspecs, the UK licence-holder for French Connection eyewear, to sell fcuk spectacles and sunglasses in its 39 in-store Vision Centres.
It will sell the eyewear at around one third less than French Connection's typical high-street prices.
The eyewear range will be supported by FCUK point-of-sale material.
If the decision proves successful, French Connection may agree to let Asda sell a much wider range of its products, such as its clothes and toiletries.
Last November, French Connection attacked Asda for promoting its sale of fcuk products sourced through the 'grey market' (Marketing, November 29, 2001). However, a source at French Connection now says it is satisfied that Asda will provide an adequate environment in which to sell its products.
Its capitulation strikes a blow for the supermarket sector over brand-owners, and is likely to pave the way for further deals between brand-owners and retailers.
Last November, Levi-Strauss celebrated a European Court of Justice ruling that barred Tesco from selling Levi's jeans imported from outside the European Union.
Levi's had argued that its customers did not want to buy its products from supermarkets and that Tesco was undermining the investment it had made in its exclusive brand image.
Tesco, which claimed it was offering customers the jeans goods at a fairer price, vowed to appeal against the decision.
Levi's declined to comment on the latest development and said it would not change its stance on the sale of grey market goods.
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