BHS is looking to take on the supermarkets as it debuts food across its stores with trials launching this week.
The department store chain, owned by Arcadia, will launch its first food trial space in Staines on Thursday and Warrington will follow next week.
The trial, which will see BHS sell branded foods, is the start of wider plans for the retailer to launch food across more than 140 stores.
Arcadia owner Sir Philip Green told the Daily Mail food prices will be 10% cheaper than the UK’s largest grocers when it launches.
“We know what we’re getting into - the most competitive food landscape for some time,” Green said. “There’s no point opening up and getting torn apart because we haven’t got competitive prices.”
Drapers has previously reported that Green has been considering a range of options to turn the struggling chain around after the retailer fell behind the rest of the otherwise profitable group. In the 12 months to August 2012 it ran at a loss of £71.4m, denting overall profits at Arcadia.