Sir Philip Green has forecast that trading will get tougher and has warned that the high street has yet to feel the full effect of the credit crunch.
Speaking to The Times newspaper, Green said that the "very tough" market conditions could get worse as consumers face mounting mortgage bills, energy costs and food price inflation.
Green told The Times: "People have started to relise this is going to be a long slog. We still haven't seen a major profit warning."
Green added that his Topshop and Topman chains were trading well but said that the middle market, where he operates his Bhs, Dorothy Perkins, Wallis and Burton chains, was "very, very tough".