M&S returns to FTSE 100 on food and clothes boost

Marks & Spencer has returned to the FTSE 100 scale of Britain's biggest listed companies for the archetypal clip successful 4 years aft a surge successful the retailer's stock price.

M&S was relegated from the scale successful 2019 arsenic it faced falling income and stiff competition.

This year, its stock terms has risen by much than 75% aft a revamp of it shops and covering range.

It has staged a "remarkable" turnaround contempt soaring prices, analysts said.

The retailer told investors earlier this period that its interim results, scheduled to beryllium published successful November, would uncover "a important improvement" successful its performance.

Susannah Streeter, caput of wealth and markets astatine broker Hargreaves Lansdown, said: "Shrinking its estate, and closing larger stores successful municipality centres, has besides been paying off."

The FTSE 100 contains the 100 largest UK-listed firms, ranked by marketplace value. Membership of the index, often referred to arsenic the bluish spot index, is seen arsenic a people of prestige and M&S was 1 of its founding members.

The scale is reshuffled 4 times a year, allowing a fistful of companies to enter, portion a fig of stragglers gaffe retired into the little tier FTSE 250.

Housebuilder Persimmon and concern manager Abrdn are among those firms who were relegated.

M&S has plans, for example, to importantly summation the fig of outer covering brands it sells online successful a bid to entice shoppers distant from High Street rivals Next and John Lewis, and has already started stocking items from Crew Clothing, Nobody's Child and Joules.

Russ Mould, concern manager astatine broker AJ Bell, said: "M&S' instrumentality to the FTSE 100 aft 4 years volition beryllium seen by immoderate arsenic a validation of the turnaround strategy launched by Steve Rowe and past followed done by his successor Machin."

He said the nutrient concern has continued to execute solidly, "helped to a grade by the affluent demographic that it serves", portion the covering concern has received a "much-needed changeable successful the limb from the squad brought successful from the collapsed Arcadia empire of Philip Green".