- Huw Hughes
Marks and Spencer is to be demoted from the FTSE 100 for the first time
since the list of the UK’s biggest companies was launched in 1984.
The British fashion and food giant will drop off the list after its market
value fell below the threshold for inclusion based on the closing price of
its stock on Tuesday. The official announcement was made on Wednesday night and changes will
take effect on 23 September.
The FTSE is a list reshuffled four times a year that ranks the UK’s top
100 companies based on their market value.
As of Tuesday evening, the retailer’s shares were valued at 3.7 billion
pounds, less than half of what it was worth in November 2015, making it
the 115th largest London-listed company. The company has seen a 40 percent
drop in its shares this year.
“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,” Helal Miah, an analyst at
the Share Centre., told the BBC. “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.”
Picture credit: M&S via FTI Consulting