BHS vows to undercut Tesco on food by 10%
Ah, BhS. Home of ugly clothes and haunted looking post-menopausal women, sitting alone in the bleak cafe. A place where retail dreams go to die. Yet it keeps going, buoyed by that most buoyant of billionaires, Sir Philip Green, who is probably at this very moment lounging on his yacht playing Solitaire on his iPad and eating quails eggs out of an ivory bucket.
Since last year, Sir Phil has been banging on about introducing a food department into his stores, and now he’s ready to launch BHS Food in two stores in glamorous Staines and Warrington. His plan is to undercut Tesco by 10%, thus leading a budget department store supermarket revolution – or something. If his discounted Bisto gravy granules and fizzy drinks are a hit, BHS Food will be introduced into 140 stores around the UK.
Sir Phil is taking a gamble on this – after all BHS suffered losses of £71million last year and nobody in the industry has any confidence in it. But he seems unperturbed about it in the way that only billionaires can be.
‘On the basis that everyone is going into the high street and convenience maybe it’s an opportunity.’ He shrugged. ‘If you don’t buy a ticket you can’t win the lottery.’
While it’s doubtful that BHS Food will become the new cheaper version of M&S Food, if all goes well, a large supermarket could buy into the deal and take advantage of BHS’s 180 locations. But if it fails, Sir Philip might have to sell the business completely.