Fashion group Arcadia will try out a new look for its department store chain Bhs in one store in May.

The retailer, owned by tycoon Sir Philip Green, is working with design agency Dalziel + Pow on the makeover, which could be adopted in other shops if successful. Bhs was merged into Arcadia last year.

Dalziel + Pow has been working with several Arcadia brands, and the format it created for Topshop’s New York store is replicated at the new branch in Newcastle’s Eldon Square extension, which opened this week.

In addition, Arcadia has worked with the design consultancy on a new look for Miss Selfridge, which was also unveiled at Eldon Square. The Miss Selfridge area - on the upper floor of a store shared with Dorothy Perkins and Burton - features pastel shades in a style that takes some inspiration from Anthropologie.

Speaking at the Eldon Square launch, Arcadia chief executive Ian Grabiner told Retail Week that investing in store design was vital to keep brands at the cutting edge in today’s competitive fashion environment.