Home Business News M&S expected to be relegated from FTSE 100

M&S expected to be relegated from FTSE 100

by LLB Reporter
3rd Sep 19 1:21 pm

Marks and Spencer (M&S) is expected to be kicked out of the FTSE 100 index on Wednesday. Shares in the retailer have plummeted by around 40% this year.

The food and fashion retailer has had continued hardship throughout the year as the food business has shown clear signs of weakness.

Retail expert, Richard Hyman said, “Symbolically, falling out of the FTSE is just another milestone in the slow-but-steady decline of what used to be a great British institution.”

Hyman added, “M&S was about quality at an unbeatable price, not fashion for fashion’s sake. But over time they have sacrificed those values to try and cut costs and become too corporate.”

The FTSE 100 hold the UK’s largest listed companies which is a mark of prestige, if demoted to the FTSE 250 it will be the first time the retailer has not been a member since 1984.

The FTSE 100 index is reshuffled four times each year, this enables companies to join the index and clears those firms who are not doing so well to enter the FTSE 250.

Helal Miah, an analyst at the Share Centre said, “There has been a decade-long complaint by investors and customers that it has failed to revamp its clothing lines, especially within womenswear, and lacks appeal for the younger generations.

“The group has also been too slow to adapt to online retailing and has been left behind by others who offer a more compelling online service.”

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