Tycoon Philip Green will bolster Safeway's non-food offer in the event of a successful takeover of the grocer.
Control of the group - plus Arcadia and BHS - would give him the chance to create the type of mixed food and non-food business that eluded his grasp when he tried to buy Marks & Spencer three years ago.
Green, who confirmed his interest in bidding on Monday, said: 'A non-food aspect is key. We would want to look at that.' Home products would be the principal focus.
Grocers are pushing into non-food in search of enhanced margins.
Sainsbury's, for instance, has introduced a Home Shop featuring cookware and electrical equipment. M&S, meanwhile, is planning a standalone chain of Home stores.
On Tuesday night, Green received the information he had requested from Safeway in order to evaluate whether to make a cash offer. Former Asda chief Allan Leighton is on Green's team, along with adviser Merrill Lynch and financier Bank of Scotland HBOS.
He said the team is evidence of the seriousness of his interest, and rejected sniping that food retail is not his forte. Green said: 'I've got Allan Leighton. Retail is retail. Okay, there are different parameters, but the fundamentals don't change.'
Although the involvement of former Arcadia boss Stuart Rose has been mooted, Green said he has not discussed the matter with him.
Last week, Green unveiled that Arcadia's like-for-like sales rose 2.4 per cent in the seven weeks to January 11. At Bhs, like-for-likes improved by 1.3 per cent. Margin improved at both businesses.
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