The application for the proposed 440 Victoria Road supermarket was rejected in January this year, by Glasgow City Council's Licensing Board on the grounds there was an over provision of off sales nearby.
At the time, local Green councillor Danny Alderslowe said: "This is a victory for local people and for local businesses."
Tesco was told their application was rejected by the board, which also took account of their local knowledge and well known social and economic challenges faced by the area.
An application to sell alcohol was granted to Sainsbury's at 482 Victoria Road in November last year and a licence was granted to Liquor City at 364 Victoria Road in February of this year.
At the appeal, at Glasgow Sheriff Court before Sheriff Nigel Ross, it was argued there was "no logical ground for refusing the Pursuer's application and granting another licence four weeks later".
But, Sheriff Ross refused the appeal. In a written judgment he said: "There is accord-ingly in my view a process of explaining the base facts relied upon, explaining the reasoning applied to those base facts and how that process led to the decision to refuse."
A Tesco spokesman said: "We are dis-appointed with this decision and will now be reviewing our options."