Marks & Spencer has avoided relegation from the FTSE 100 index, after shareholders rallied to support the retailer’s recovery plan.
According to The Telegraph, despite Marks & Spencer seeing a 62% decline in pre-tax profits last year, its pledge to undertake major changes at the business in order to drive recovery has been enough to convince investors that the retailer is worth backing.
On 16 May, ahead of the group announcing its annual results, it was feared that the business was on the brink of dropping out of the coveted index, on which it has held a place since 1984.
Following a rallying cry by M&S chief executive Steve Rowe following the publication of the results, as well as announcing proposals to offload a number of stores, backers seem to be remaining behind the retailer.
Elsewhere, The Telegraph reported that online pure-play retailer Ocado is on the brink of entry into the FTSE 100, on the back of its recent deals with Kroger in the US and Casino in France.
Security group G4S is to drop out of the index, however, and likely to be replaced by bookmaker GVC.
Board Departure
Also at Marks & Spencer, Richard Solomons has informed the business of his intention to stand down from the group’s board, with his departure confirmed for 10 July.
“I am hugely grateful to Richard for both his personal support and for the experience and wisdom he brought to the board,” commented M&S chairman Archie Norman. “He provided invaluable help during a difficult period, and we wish him well in his next endeavours.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
