Tycoon Sir Philip Green is to merge his Arcadia and Bhs businesses.

The Bhs chain will be run as an Arcadia brand, enabling the entrepreneur to streamline operations and cut costs, the Daily Telegraph reported.

Some big stores may be remodelled as a house of brands, bringing together various of Green’s fascias – which include Topshop, Miss Selfridge and Dorothy Perkins – under one roof.

Such a combination has already been piloted in Peterborough, and may provide a blueprint for other stores.

Plans will be finalised in the coming months following consultation with staff but changes may take two years to implement.

The merger is likely to result in some job losses as Bhs combines logistics, marketing and finance functions with Arcadia’s.

Some smaller sores may close in locations where having one big store would be more cost-effective.

An Arcadia spokeswoman told the Telegraph: “We are looking to use the group’s resources in the best way possible.”

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