Sir Philip Green has caused a stir in the retail market by announcing that new venture BHS Food will enter the supermarket price war.
Speaking at the weekend, the tycoon said BHS Food will undercut the big four by up to ten per cent
The venture will be piloted in two stores, and if successful could roll out in more than 140.
The trials, in BHS stores in Staines and Warrington, are set to begin immediately, and will sell branded products such as bread, cakes, fizzy drinks and some frozen items.
Green told The Daily Mail: “We know what we’re getting into - the most competitive food landscape for some time.”
The news comes as Morrisons announced it will invest £1 billion into price cuts to challenge the discounters, following Asda and Tesco who made similar price-competitive moves at the start of this year.
Last year Green told The Independent that BHS can sell food in 150 of its stores. 'Convenience is where all the supermarkets seem to be going. We've got the sites so we might as well have a shot at it,' he told the paper.
BHS, which recently posted a pre-tax loss of £71 million, competes with high street department stores Debenhams and Marks and Spencer.
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