Littlewoods is preparing for an intensified fight with Argos, following the appointment of Tim James as chief executive of the Index catalogue store chain.
James will take up the post in August when Index's split from the signature fashion stores takes effect.
Retail Knowledge Bank research director Robert Clark said Index appeared to be 'losing out in a big way' to Argos. He added: 'Index has been keeping a really low profile, whereas before it was quite a worthy competitor.'
Littlewoods chairman David Simons said Index would be strengthened by the hiring.
'I believe he will make a considerable difference to Index stores by further developing this exciting young family brand,' he said.
James was previously trading director at Homebase and has held senior positions at Superdrug, Boots and Procter & Gamble. His appointment followed the earlier announcement that former Monsoon managing director Rose Foster would head the Littlewoods Fashion Stores arm.
A Littlewoods spokesman said there had been a 'significant turnaround in profitability' at the high street business over the past year and greater returns are expected by separating the businesses.
Littlewoods was bought by the Barclay brothers in a£750 million deal last October, and a dramatic programme of change has been implemented since then. The Index chain consists of 69 standalone stores and 97 within Littlewoods stores. A spokesman said despite the operational changes there was no plan to end the dual store arrangement.
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