Arcadia is planning to convert its high profile Miss Selfridge and Wallis stores on High Street Kensington into a Topshop.

The company will create a single 5,000sq ft unit to boost Topshop's London presence. Industry insiders suggested Topshop has enjoyed a strong summer, and that it could outperform Miss Selfridge in the more upmarket location because it has been so well adopted by the style press and older, higher-earning shoppers.

It is understood that Arcadia has been considering offloading the Kensington store for more than a year.

Both Miss Selfridge and Wallis are believed to have achieved decent sales, but suffered because of high rent and associated costs.

There has been outside interest in the store in the past but no deals emerged.