SIR PHILIP Green, controller of the Arcadia retailing group which includes Top Shop, BHS and Dorothy Perkins, warned of tougher conditions on the high street as his holding company slipped to a loss and prepared to shut up to 260 stores across his portfolio over the next three years.

Total sales at his Taveta Investments vehicle, which also operates Burton, Evans, Dorothy Perkins and the Miss Selfridge retail brands, slipped from £2.78 billion €3.23 billion) to £2.68 billion in the year to August 27th.

Sales at the group’s Irish operations Arcadia Group Multiples (Ireland) were not disclosed. The most recent accounts for the Irish arm show sales in the year to August 2010 of €59 million and profits of €1.8 million.

Profits before exceptionals at the parent fell by a third from £213 million to £133 million as a margin squeeze of £52 million combined with the fall in sales weighed on performance. But the company moved into the red after booking £253 million in exceptional items as it made a £120 million pretax loss for the year.

Sir Philip said: “Trading conditions remain extremely challenging, with style, quality and value at the top of our agenda and more important than ever. Additionally, the warmest October and November on record have made autumn trading much tougher. Current trade sees total VAT inclusive like-for-like sales down 4.4 per cent for the first 12 weeks of the new financial year.”

Sir Philip said Arcadia expected to continue to shut stores after closing several dozen this year. – (Copyright The Financial Times Limited 2011)