Bhs to merge with Arcadia Group

UK: Bhs to merge with Arcadia Group

By Joe Ayling | 25 February 2009

Retail mogul Sir Philip Green is to merge his department store chain Bhs with the Arcadia Group portfolio of brands that includes Topshop, Burton and Dorothy Perkins.

The news was communicated to senior staff at both companies yesterday (24 February).

Sir Philip is looking to consolidate functions like logistics, property and finance for a more streamlined and efficient operation, according to a statement.

The company said both operational teams will be "undertaking an information gathering period before reviewing any integration options" though.

It is also reviewing the concept of introducing Burton, Dorothy Perkins, Evans and Wallis brands to Bhs stores, after a successful trial at one of its UK department stores.

The company is considering how this retail concept, and others, can be extended into further markets too, the statement added.

Sir Philip said: "This is work in progress. I believe we have the necessary skill and experience across the two businesses to make some strategic changes that will benefit the group as a whole, and further strengthen our position within the marketplace during a difficult retail climate."

Sectors: Apparel, Retail

Companies: Bhs, Arcadia, Burton, Dorothy Perkins, Topshop, Evans, Wallis