M&S could fall out of FTSE 100
By Sarah Wood | 28th August 2019
One of Britain's favourite retailers could lose its spot on the FTSE 100. Marks & Spencer has just one week to save itself before it faces a potential relegation from the top flight of blue-chip firms.
The retailer, which has stores across the county, is one of the few companies to have had a place in the index since it was first launched in 1984, as reported by Retail Gazette.
Companies that drop out of the FTSE 100 can suffer a "double whammy", as funds invested only in blue-chip stocks automatically sell their shares.
M&S has lost two-thirds of its value since 2015. It has a market value of less than £3.7 billion, putting it at the bottom of the FTSE 100 and behind a number of companies in the FTSE 250.
Other retailers battling for a future in the FTSE 100 include B&Q owner Kingfisher, Sainsbury's, and Morrisons.
Stock market reshuffles take place every three months and the next one will be based on share prices at the close of business on 3rd September.
Meanwhile, there is better news for high street stationer, WH Smith. While profits for the year ending 31st August will be in line with expectations, it has seen big growth in its hospital stores.
The company said its stores in hospitals have become the second biggest money-maker in its travel division - after airports - with patients and visitors flocking to its stores.
WH Smith also revealed strong sales of high-margin stationery in its high street stores have helped, with bosses planning to roll out more ranges and free up more floor space for stationery.
Punchline said: "It's a sign of the times that one of the biggest names in retail could be dropped from the FTSE 100 in the next few days. But it's good to see that WH Smith is flourishing and has found a profitable niche away from the high street and online competition."
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