SUPERMARKET chain Morrisons is in danger of being relegated from the FTSE 100 list of Britain’s biggest companies, it was reported today.
The Mail on Sunday reported that Bradford-based Morrisons was just above the cut-off point for exclusion from the FTSE when the market closed on Friday. The London Stock Exchange is expected to reveal on Tuesday who is on course to be promoted or excluded from the FTSE 100, depending on the latest market prices, as part of its quarterly review. A final decision will be made a week later. A Morrisons spokesman declined to comment on the report.
In June, bosses at Morrisons were relieved when the company avoided being kicked out of the FTSE 100 in the last quarterly review.
The retailer had been gearing up for the news that a decline in sales and profits had led to its relegation from the top flight after more than 14 years, but mobile power company Aggreko was kicked out instead.
It was good news for Morrisons’ shareholders because FTSE 100 constituents are automatically included in tracker funds held by insurance and other investment companies.
Under new chief executive David Potts, Morrisons has gone back to basics and is focusing on its core supermarket estate.
Mr Potts took the helm in March, replacing Dalton Philips, who was ousted in January after sliding profits and sales.
Mr Potts has axed the majority of the management team he inherited and cut head office staff while adding 5,000 shop floor staff to improve customer service. He has also brought back staffed express checkouts and got rid of the overly complex computerised queue management system.