Green plots his revenge after defeat at M&S

Retail magnate Philip Green today pledged to take the Marks & Spencer fight to every corner of the high street after he abandoned his £9.1billion attempt to take over the group.

In a challenge to new M&S chief Stuart Rose, he said his retail empire of Bhs, Dorothy Perkins and Topshop would "trade their socks off " in coming months "so people can see who the best retailer is".

The first part of Mr Green's assault on the high street fashion market is likely to be an advertising blitz and a renewed range of clothing at his stores. M&S said simply that it was pleased a period of uncertainty had come to an end.

Mr Green, who was prepared to put £1.6billion of his fortune into buying the company, last night threw in the towel after failing to gain access to the M&S books. His approach has worked wonders for M&S shares in recent weeks, which have added about a third of their value, but they are expected to tumble today.

Mr Green's offer, worth 400p a share, was firmly rejected by the M&S board, which received overwhelming support from small shareholders at the annual meeting yesterday.

Asked what his next move would be, Mr Green said: "To a beach, where there are no phones."

Mr Rose has promised the shares will move above 400p in time as he implements his recovery strategy.

The high street battle between the two sides in coming months is likely to be vicious. But it means good news for consumers who will be picking up bargains from the clothing rails as M&S and the Green empire slug it out.

With M&S sales still on the slide, Mr Green starts at an advantage, but Mr Rose has about nine months to engineer a turnaround.

The M&S chief has promised a massive overhaul of the firm's image.

He admitted this week it was in danger of losing touch with its key customers and promised a back-tobasics approach. In the six weeks since he became chief executive he has personally reviewed the firm's autumn clothing ranges.

Mr Green was today still fuming over the M&S board for failing to discuss a possible sale with him. "We'll battle it out on the high streets," he said. "The customers will be the winner, the customers will be doing the voting."