Wednesday, 30 May 2018

M&S avoids relegation from FTSE 100 as online grocery retailer Ocado moves up

M&S has avoided relegation from the FTSE 100 as online grocery retailer Ocado moves into the elite group, it has been confirmed.

Online gambling company GVC Holdings will join Ocado in its promotion, while Mediclinic International and G4S will enter the FTSE 250 Index to make way.
The changes take effect on Monday 18 June.

M&S had been put forward by commentators as one to watch during the quarterly reshuffle, as the 134-year-old British company struggles against tough competition in clothing and food, its two main offerings.

It has been a member of the blue-chip FTSE since the index began in 1984.

The re-shuffle was based on closing prices from Tuesday and M&S had been just nine spots away from falling into the FTSE 250 zone, according to Thomson Reuters data based on last Thursday's closing prices.

Ocado, on the other hand, has had a stellar year, announcing earlier this month an exclusive partnership with America's second-biggest supermarket chain - sending the UK online grocer's shares to record levels.

In March, they announced £363.4m retail revenues for the 13 weeks to 4 March and sales that were 11.7% ahead of the same period last year, despite a slower rate of growth they blamed in part on the bad weather.

The online grocery business had no comment on its promotion when contacted. Its shares had risen 1.5% during Wednesday but the FTSE announcement was made after the London Stock Exchange closed for the day.

SKY      News.

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