British supermarket giant Tesco, under pressure from its discounter rival during an ongoing cost-of-living crisis, said it intended to appeal the High Court ruling.

The case centred around Tesco’s use of a yellow circle on a blue square background advertising cheaper prices for customers joining its Clubcard loyalty scheme — a design similar in shape and colour to Lidl’s main logo.

Judge Joanna Smith ruled that Tesco had “taken unfair advantage of the distinctive reputation” for Lidl’s low prices.

A Tesco spokeswoman said the group was “surprised and disappointed by the decision”.

Lidl expressed pleasure at the victory in a short statement.