The FTSE 100 has undergone a reshuffle, impacting major retailers.
- Frasers Group and B&M are removed from the prestigious index.
- Games Workshop Group is the new entrant to the FTSE 100.
- Frasers’ share decline linked to Boohoo Group conflict.
- B&M’s profit drop due to increased operational costs.
The FTSE 100 index, a symbol of market stature, has recently been revised, leading to significant changes for major retail players. Frasers Group and B&M, previously part of this elite list, have been demoted to the FTSE 250, highlighting a shift in their market positions. This decision follows a quarterly review by FTSE Russell, the body responsible for index maintenance, which aims to reflect current market conditions.
Notably, Games Workshop Group has been elevated to the FTSE 100, marking a new chapter for the board game manufacturer. This promotion is a testament to its market growth and investor confidence. Meanwhile, Deliveroo has also secured a position in the FTSE 250, indicating a reshuffling that aligns with evolving market dynamics.
In November, it became apparent that Frasers Group was at risk of being removed from the FTSE 100. The company’s shares have been on a downward trajectory, exacerbated by ongoing tensions with Boohoo Group. Frasers had only returned to the FTSE 100 in 2022 after a prolonged absence, making its recent demotion significant for its market status.
B&M has faced its own challenges, with shares dropping 21% over three months. The retail chain’s adjusted operating profit has fallen by 1.8% to £258 million for the six months ending 28 September. This decrease is linked to rising costs associated with expanding stores and enhancing its supply chain in France, illustrating the complex web of retail economics.
These changes are scheduled to be effective from the close of business on 20 December, suggesting a timely adjustment for stakeholders.
The reshuffle of the FTSE indices reflects the dynamic nature of the market, where companies must continually adapt.
