Morrisons is at risk of falling out of the FTSE 100 due to a severe drop in its share price and concerning recovery plans.
The supermarket chain has been in the list for more than 14 years but as sales have fallen its share price has reduced by 17% this year.
In the last quarterly reshuffles in June and September, Morrisons missed demotion and the final decision will be made by the London Stock Exchange. This will be decided on Wednesday based upon the closing price of the day before.
The new chief executive David Potts has been attempting to make sure the company’s fortune is not all lost but the supermarket has been under pressure through a tough trading period.
Morrisons announced a 2.6% drop in sales last month for the three months to November, which meant that there was a further fall in share price.
The supermarket also faced its worst result in eight years back in March when there was a 52% drop in annual profits to £345 million.
It is no surprise that Morrisons is struggling considering the current state of the sector due to price wars with the big four supermarkets because of the rise of the discounters.
Morrisons has had to make several losses and this included selling 140 “M” local convenience stores that did not make any profit as a result of needing to focus on the larger stores.