RETAIL entrepreneur Philip Green last night declared war on Marks & Spencer after losing his takeover battle.

Bhs and Arcadia owner Mr Green has warned his group will now do battle in a high street "judgement day" with M&S.

Mr Green, who is the biggest retailer of womenswear on the high street, plans to use his shops - including Wallis, Dorothy Perkins, Burton, Evans, Topshop, Topman, Miss Selfridge and Bhs - to dent M&S sales, possibly through a price war.

If sales do not improve at embattled M&S, Mr Green could launch another takeover bid and gain the support of shareholders.

He said: "The big winners are going to be the customers. What I am fired up about is making sure our own businesses - Bhs, Top Shop, Dorothy Perkins - trade their socks off."

M&S boss Stuart Rose was last night facing the task of delivering a trading revival after fending off Mr Green's proposed £9.1bn takeover bid.

Mr Rose is targeting a return to like-for-like sales growth in the next financial year.

Under the banner of ''less is more'', Mr Rose vowed on Monday to reduce the number of clothing lines on offer and revamp stores to make them less cluttered.

The billionaire's decision to pull out came after he realised his bid vehicle Revival would not gain the co-operation of the M&S board.

Mr Green, who put up £1.6bn of his own money for the approach, said more than 30 per cent of shareholders supported his campaign to be permitted to examine M&S' accounts.

But a lack of support at the M&S annual meeting this week led to Mr Green dropping his bid.

Retail expert Anthony Platts, of investment managers Wise Speke, in Teesside, said: " I am a sceptical about this price war because Philip Green's stores have a different customer base to M&S.

"Although a price war will hurt M&S, I don't think it will be as effective as Green thinks, because M&S customers are prepared to pay more than Bhs customers. Without being unkind to Bhs, it is more downmarket than M&S. Stuart Rose's strategy is about trying to attract people in their 40s or above who don't want to dress like they are middle-aged. Customers at Philip Green's Dorothy Perkins, Topshop and other Arcadia shops are generally younger than that.

"It is certainly going to be difficult for the management team at M&S as they will only have about six months to turn it around."