JEANS giant Levi's is opening its first company-owned outlet store in the UK at the McArthurGlen Designer Outlet complex in York next month.

The deal with the international jeans corporation will surprise the retail world, because until now Levi's has been largely a franchise operation.

The company expressed a desire to come to York in its own right shortly after one of its franchises came to an end in December 2003, after a year at the designer outlet.

When the new store opens, employing 25 people, on Friday, February 4, it will double as both a discounted retail outlet and a training centre for new franchisees.

Plans are in place to create a dazzling new store demonstrating the kind of excellence expected from Levi's franchisees.

It is on the same 2,500sq ft occupied by the Sold Out footwear chain, whose lease at McArthurGlen in York came to an end last month. It used to employ 12 people.

Colin Wilding, general manager of McArthurGlen in York, said: "Levi's see us as a flagship. They do have full price company-owned high street stores, but this will be the first and only company-owned discounted store.

"It means that we will get all the attention of the Levi's head office and, therefore, they will ensure the store gets the best possible product at the best possible price."

The deal struck was that all stock will sell at a minimum 30 per cent discount on the recommended price.

"But there will be special offers that will exceed that," said Mr Wilding.

Levi's has always carefully guarded the price of its jeans, particularly aware of the threat from the so-called "grey market".

It successfully took supermarket chain Tesco to court in 2001 to prevent it from selling cut-price Levi's jeans in the UK - bought from areas outside the European Economic Community without Levi's permission as trademark owner.

Matthew Mycock, managing director for Levi's UK, said: "York is already a strong outlet centre that is developing a great mix of premium brand tenants, and it makes a lot of sense for Levi's to be part of that premium mix.

"We will run the unit on an owned-and-operated basis and treat it as a store of learning from which we can take best practice out to our other Levi's outlets. With a 3.2 million footfall to the centre, combined with the power of the Levi's brand, we're confident that the outlet will be a great commercial success."

Updated: 08:45 Monday, January 24, 2005