Sir Philip Green is preparing for a shopping spree after forecasting that consolidation is almost inevitable in the retail sector over the coming year.

The Topshop-to-Bhs billionaire said that, because of the economic crisis in Iceland, talks were still up in the air over his proposed purchase of parts of the high street empire built by the country's Baugur conglomerate.

However, he said that he was interested in “one or two” other opportunities beyond Iceland, adding: “We could just as easily back a new concept, a small retail concept, regardless of the climate.”

Sir Philip refused to comment on speculation that he has been approached by numerous parties interested in teaming up on deals for struggling companies, but he said: “We don't want to be a doctor — there are too many patients.

“There's got to be a proper reason for doing a deal. We don't want to do one just for the sake of it.”

Two weeks ago, Sir Philip flew to Reykjavik with an offer to buy the estimated £1.5 billion of Baugur's debt that has been frozen by the Icelandic Government.

Such a deal would in effect give him control of the investment group's portfolio, which includes stakes in more than 20 high street brands, such as the womenswear chains Karen Millen, Principles and Whistles, and the House of Fraser department stores.

Speaking on Tuesday, Sir Philip said that the nationalisation of three of Iceland's biggest banks had made it virtually impossible to know how the sale process was progressing and when any decision by the Icelandic authorities might be expected.

It is thought that Sir Philip is principally interested in the fashion brands.

“It's not clear, regardless of what you wany to buy, if anyone is in a position to deliver, anyway,” he said. “When you turn up at a bank and find a policeman rather than a bank manager, it's quite difficult.”

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