Marks & Spencer Set To Drop From The FTSE 100
Wednesday could be a historic day for British retailer Marks & Spencer as it is widely expected that the venerable High Street firm will be relegated from the FTSE 100. That would be the first time since 1984, when the FTSE 100 was created, that Marks & Spencer is not a component member.
The company has been struggling for some time, with its market cap now less than half of what it was in 2015. The fashion side of the business, which is considered the keystone of profitability for the company, has been sliding for a decade, and the food side of the business, which has helped to keep things afloat, has shown signs of weakness recently as well.
Put all together it adds up to a lack of confidence from investors, who have sent shares lower by more than 40% in 2019, including a 1.5% slide on Tuesday ahead of the expected relegation from the FTSE 100.
The company has been slow to respond to complaints that its clothing line hasn’t kept up with the times, and has also been too slow in adapting to online retailing. Put together the combination has seen M&S losing share to High Street rivals such as Primark, and online retailers like Asos.
Symbolically this is considered another step lower in the slow and steady slide of what was once a great British fashion institution.
It’s a huge fall for the company, which just two decades ago became the first British retailer to post pre-tax profits of more than £1 billion.
