The billionaire, who also owns several high street clothing chains including Topshop, is looking to price branded goods as much as 10 per cent below the big supermarket rivals.
It comes as Tesco, Asda, Sainsbury’s and Morrisons face a squeeze as discounters Aldi and Lidl eat into their market share.
Morrisons recentlyannounced that it would spend £1 billion to slash prices over three years – after annual results showed it had tumbled into losses – while Asda is alsospending heavily to make reductions.
BHS will start offering food within days at two branches, in Staines, Surrey, and Warrington, Cheshire, with plans for about 140 such outlets.
Sir Philip said: “There’s no point in opening up and getting torn apart because we haven’t got competitive prices. We know what we’re going into – the most competitive food landscape for some time.”