Expansion on the menu for troubled BHS

THE new owner of struggling department store chain British Home Stores has announced a raft of initiatives aimed at kick-starting growth.

Retail Acquisitions, which bought the group of 171 shops from Sir Philip Green for £1 in March, said it would also launch a big push abroad with a store opening in Iraq next year.

It is unclear how a shop which is so overtly British will be received.

Chief executive Darren Topp said: ‘There are a number of international brands in Iraq and there are l ots of opportunities f or rebuilding.’

He added: ‘Iconic British brands are wanted internationally.’

The firm already has 86 franchised shops around the world and would like to break into India, China and South America.

Topp unveiled a new-look store in Watford with an improved BHS logo, a Claire’s Accessories concession and a cafe.

This will be the template for future outlets as it rolls out its modernisation programme.

Under Green’s tenure BHS tested three food halls, which are supplied by wholesale chain Booker, and Topp announced a plan to expand this to 20 by the end of next month with 50 next year. ‘Watford illustrates what we are doing with our turn-around,’ said Topp.

‘It’s a clear plan of action which will appeal to more customers. Food doubled the number of customers coming into our shop overnight. It has a halo effect across rest of store.’

The move further into convenience food comes with the modernisation of an initial 20 outlets featuring new mannequins, product displays and store design.

It has also announced a deal with catering giant Compass who will run all its restaurants and cafes.

Earlier this week BHS secured an important £65m lifeline with a l oan f rom i nvestment group Grovepoint Capital.