Cash-and-carry wholesaler Booker has agreed a deal with Sir Philip Green to supply his Bhs chain with food as he pushes ahead with plans to take on the grocers.

Sir Philip is piloting a Bhs food range in stores in Staines and Warrington. He plans to roll out the test across up to 150 stores if it proves successful and he says the endeavour will undercut the grocers by 10% on the price of branded goods.

Booker will supply the Staines and Warrington stores and will have the option to supply up to 50 shops, Retail Newsagent magazine reported.

Sir Philip is entering the grocery sector fray following the strides made by Aldi and Lidl into the grocery market, where they have been stealing share from the big four.

Booker will provide Bhs with its Family Shopper range, which is designed for discount stores and independent retailers.

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In pictures: Bhs unveils first food hall at Staines store