Frasers Group and B&M have been removed from the FTSE 100 as part of the latest review of the London Stock Exchange’s prestigious index.
- Three companies have been demoted in this reshuffle, allowing new entries like Games Workshop Group into the FTSE 100.
- Frasers Group’s shares have been declining amid a conflict with Boohoo Group, leading to its demotion to the FTSE 250.
- B&M’s shares dropped by 21% over three months, influencing its relegation to the FTSE 250.
- All changes will take effect from 23 December, after the close of business on 20 December.
In the recent reshuffle of the FTSE 100, two major retail players, Frasers Group and B&M, have been removed from the prestigious index. This change, effective after the close of business on 20 December, makes way for new entrants such as Games Workshop Group, which has secured a position in the FTSE 100. Meanwhile, Deliveroo has also found its place in the FTSE 250, reflecting the dynamic nature of the market.
Frasers Group, owner of Sports Direct, had previously re-entered the FTSE 100 in 2022 after a six-year hiatus. However, ongoing share price declines, further exacerbated by its ongoing issues with Boohoo Group, have now led to its relegation to the FTSE 250. The challenges with Boohoo have been a significant factor impacting Frasers’ market performance.
B&M, a well-known variety retailer, has experienced significant share price depreciation, with a reported fall of 21% over the last three months. This drop is reflective of broader operational challenges, including a 1.8% decline in adjusted operating profit to £258 million for the six months ending 28 September. The company’s increase in retail locations and investment in its supply chain, particularly in France, have contributed to these financial pressures.
These strategic shifts in the FTSE indices highlight the ongoing adjustments within the UK retail sector, as businesses navigate financial headwinds and evolving market landscapes. The re-evaluation of these indices indicates a responsive approach to market changes, ensuring the representation of companies that align with current economic conditions.
These changes underscore the shifting dynamics within the FTSE indices, mirroring the broader transformations in the UK retail market.
