Retail watchers are keeping a keen eye on Marks & Spencer’s share price today as the historic UK high street store faces losing its FTSE100 ranking.
Speculation began earlier this year that M&S may tumble out of the stock market’s top 100 as its share price continued to decline. As of today, the retailer is placed at number 99 and may drop out of the list by tomorrow, as the officials in charge of the list will reshuffle the indices tomorrow based on today’s closing share price, reports City AM.
The retailer, which reported a more than 62% drop is pre-tax profits after adjusted items last week, experienced a further drop in share price today of around 2.7%, however the two companies behind it in the list – Severn Trent and Weir Group – also experienced a drop of 2.1% and 3.1% respectively meaning it may yet cling to its ranking.
As of close of business on Friday, M&S had a market capitalisation of £5.05bn with Severn Trent at £4.93bn and Weir Group at £4.87bn.
Should M&S fall from the list it will be a further seminal moment in retail, demonstrating the shift in power to the etailers. In November of last year, online fashion retailer ASOS (which is listed on AIM) overtook M&S’s market capitalisation in what many described as retail’s “Tesla Moment” in reference to the moment when electric car manufacturer Tesla overtook Ford in terms of value.
M&S has also since been overtaken in market capitalisation terms by online grocer Ocado, which also looks certain to be promoted to the FTSE100.