Marks & Spencer Group (LON:MKS) has dropped out of the FTSE 100 index, for the first time in the benchmark index’s history. The move comes after the high street retailer narrowly remained in the blue-chips club at the index’s previous reshuffle.
Marks & Spencer’s share price has advanced in London this Wednesday, having gained 2.76 percent to 191.91p as of 12:04 BST. The group’s shares are currently outperforming the broader UK market, with the benchmark index standing 0.3-percent higher at 7,289.76 points.
MKS drops out of FTSE 100
Marks & Spencer crashed out of the FTSE 100 yesterday after its shares fell 1.5 percent, valuing it at £3.64 billion, and placing it as the 115th most valuable London-listed company.
The Times, however, reported that the retailer’s chairman Archie Norman had played down the group’s first exit from the FTSE 100 since the blue-chip index was created 35 years ago.
Marks & Spencer, which started as a market stall in Leeds in 1884, now has more than 80,000 staff and 1,035 shops across Britain.
Analyst weigh in on mover
The Guardian quoted Nick Bubb, a retail analyst, as commenting that M&S had been in the relegation zone for some time.
“M&S has been declining remorselessly for many years, as a result of weak and arrogant management, and stronger, more focused competition [such as Primark],” adding that the retailer’s “problems have mainly been on the clothing side, where M&S tries and fails to be all things to all people in the mid-market”.
The BBC meanwhile reported that retail expert Richard Hyman had said that symbolically, M&S’ falling out of the FTSE 100 “is just another milestone in the slow-but-steady decline of what used to be a great British institution”.
According to MarketBeat, the London-listed company currently has a consensus ‘hold’ rating, while the average Marks & Spencer share price target stands at 242.85p.