BHS poised to take on Marks & Spencer by entering food market

Sir Philip Green is preparing to open a food offering in up to 150 BHS stores in a move that would pit the retailer against Marks & Spencer.

BHS: owner Arcadia Group looks at opening an in-store food offering
BHS: owner Arcadia Group looks at opening an in-store food offering

BHS has permission to sell food in around 150 of its 183 stores from the days when it used to sell food, before being brought by Green in 2000.

Green revealed the potential move into food as he announced the results of BHS parent company Arcadia, which saw like-for-like sales dip 2.7% for the year ending 31 August.

BHS could launch its first convenience outlet in early 2014, with the decision coming after research found BHS customers would want to buy food from the retailer.

The move would pit BHS against Marks & Spencer, whose clothing sales continue to dip as its food business remains strong. 

Marks & Spencer recorded a 1.3% fall in like-for-like sales in the second quarter from July to the end of September across general merchandise sales, while its like-for-like food sales rose by 3.2%.in the quarter.

Green previously attempted a takeover bid of Marks & Spencer in 2004, which resulted in Sir Stuart Rose and Steve Sharp being parachuted into M&S to fend off the move.

Asda chief executive Andy Clarke described Green’s plans to enter the convenience market as "interesting" as he unveiled an Asda that could have the supermarket giant launching a convenience offering towards the end of the five-year period.

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