M&S To Drop Out Of FTSE 100?
Could M&S fall out of the FTSE 100?
The FTSE 100 was created in 1984 and ever since then Marks & Spencer have been an ever-present, just as it has been on the streets of the United Kingdom.
That could all be about to the change though and one of the most respected names on the high street could be about to drop out of the FTSE 100 as its share price keeps falling and falling. These are difficult times at the moment for M&S as it struggles to keep up with the competition.
100 A Key Number
A hundred is already a significant number for M&S right now as it announced plans to close over 100 of its stores by 2022 as the part of what they are calling a “radical transformation” of the company. Most of the locations of those stores have yet to be announced which has led to a lot of uncertainty.
Their share price is nearly half of what it was just two years ago, and it might sink further if the bad news continues to come. Falling out of the FTSE 100 wouldn’t force any change in the fortunes of the company, but it will be an embarrassing headline for a store which deeply cares about its brand.
Keeping Up With The Times
Many retailers have struggled with the rise of online shopping and M&S is one of those companies that didn’t embrace the change quickly enough. Their clothing brand, in particular, has suffered and it has recently said that it’s aiming to take a third of its sales online.
One of the companies that could force them out of the top 100 is ironically Ocado, who are an online grocery retailer seemingly on the rise. The old way of working has been surpassed by the new way of spending money, and if Ocado overtakes M&S it would be very symbolic.
M&S are in no great danger, but there are big problems that need to be fixed. Toys ‘R’ Us are an example of a company that paid the price for not evolving. M&S are being faced with huge warning signs that instant improvements are needed, falling out of the FTSE 100 would just be the latest in a series of bad news stories.