M&S at risk of falling out of FTSE 100
Marks and Spencer could fall out of the FTSE 100 unless it is able to increase its share prices by next Wednesday (4 September), according to a report by The Telegraph.
It comes after Marks and Spencer reported a fall in both sales and profits in May, with the latter down nearly 10%, as it continues its turnaround plan.
The embattled retailer revealed in the year ending 31 March pre-tax profits before one off items were £523.2m, down from £580.9m the previous year. Marks and Spencer attributed the fall to increased headwinds on sales, partly offset by the operating costs of its transformation programme.
Additionally, in July it revealed the latest store set to close under its restructuring plan. As part of its plan to axe 85 full-line stores and 25 of its Simply Food outlets as it targets a return to profitable growth, the food and homeware retailer announced its Dorchester store, located on South Street in Dorset was set to close.
Aaron Spicer, M&S head of region for Wessex, said at the time: “Shopping habits are changing so we’re transforming our store estate to meet the needs of today’s customers.
“Proposing to close our Dorchester store is a difficult but necessary part of reshaping our estate to have fewer, but more inspirational stores. Over the coming weeks our priority will be supporting our great team of colleagues at Dorchester as we discuss what’s best for them.”
A total of 47 Marks and Spencer stores have now closed as part of the shake-up. Last month chief executive Steve Rowe admitted to shareholders at its AGM that plans to close 110 of its stores are “not finite” and said the retailer is paying for “not shutting stores 10 or 20 years ago”.
