Due to the cost of store space in city centres, a proportion of the 200-300 Evans, Burtons, Wallis and Dorothy Perkins outlets will be moved into BHS stores. A trial has already begun in BHS's Peterborough store.
Sarah Peters, a retail analyst for Verdict Research, believes that although there are some benefits to the arrangement, placing the new additions in-store will be tough. ‘It will all depend on how they implement each brand - they will have to have their own clear space as it will change the way consumers will shop,' she says.
‘Because BHS will now have more of a confined space, it will make them more focussed on what they sell. One of the biggest challenges will be making sure there is no overlap. Dorothy Perkins has really upped its game in fashion recently, but I don't think moving into BHS will have that massive an impact on the brand,' she adds.
Although the move is part of a commercial goal to cut the costs of retail space across the business, the move could also indicate Green's plans to create a one-stop shopping destination. Green has being trying to purchase the UK operating Baugur business since last autumn, and if successful he would acquire brands such as Coast and Oasis.
Nick Gray, managing director at retail specialist Live & Breathe, believes that if the deal materialises then BHS could resemble something similar to the Debenhams model. ‘There's speculation that Green is looking to go down this path, which would give consumers more reasons to go to a BHS store,' he says.
Gray also points out that it is not the first time the group has moved one of its high-street brands into BHS. ‘A couple of years back it happened with Tammy and this worked really well for them,' he says. ‘The key thing for merging the brands in-store will be how they manage the audience and segmentation. If they get it wrong it could be really bad,' he adds.
BHS is a high-street brand in need of a revamp. Integrating the retailer into the Arcadia Group of brands and implementing branded fashion lines may just be the treatment it needs. Its success however will depend on how well the likes of Dorothy Perkins and Burtons fit into its in-store set-up.