As losses are posted once more at Sir Philip Green’s department store arm, Retail Week asks, how do you solve a problem like Bhs?

Bhs has long been the problem child of Sir Philip’s kindergarten. Last year’s performance of a £71.4m loss – or £116m if you take into account a provision taken against future leasing obligations of its loss-making stores – is actually an improvement against the £76.1m shortfall the previous year.

Verdict analyst Kate Ormrod simply summarises Bhs’s problem: “Other players are doing it better.”

Green has tried to revive the failing fascia by introducing his other Arcadia brands into the stores.

Although this may have created some interest, especially in locations which do not have any of the other fascias such as Dorothy Perkins, it has not given Bhs what it is lacking – its own personality.

Debenhams has its exclusive designer ranges, John Lewis has its exemplary customer service and price promise, House of Fraser has its slightly more upmarket brands, where does that leave Bhs?

Ormrod believes there is a big opportunity in own brand for the retailer.

With a lower socio-economic demographic, there could be potential for Bhs to develop a successful value range. Players like Primark, and Matalan have made strides in that area during the downturn.

Ormrod also believes that Bhs should make more of its strong points such as its impressive lighting and home collection.  At the moment there is a fashion bias in its stores, but perhaps, rebranding as a home specialist could give it more of a niche within the department store market.

One of the biggest issues for Bhs is its tired store estate which is doing little to draw in shoppers, especially at a time when rivals including Debenhams are investing heavily in store refurbishment.

Low key store environments even extend to the Oxford Street flagship, according to Ormrod.

“Flagships are supposed to be the best one, the one that you’d like to emulate. But if you look at Bhs it is not on par with any of its rivals there especially with the huge investment Debenhams is making in its store,” she says.

But with 183 UK stores – which gives it a bigger store network than Debenhams – refurbishment will demand heavy investment. There lies another concern for Green: Bhs’ overgrown store estate.

It’s no secret that Green is looking to close stores across his empire, and it would be no surprise if Bhs was trimmed down in the future.

It is clear that Bhs needs work and investment to return to profitability, which begs the question: is Sir Philip willing to back his enfant terrible?