Marks & Spencer’s market valuation could soon be overtaken by etailer Asos, in a “seminal moment” for the retail industry, analysts predict.
Mark Photiades, a retail analyst at Cantor Fitzgerald, said: “The valuation gap between the two businesses is the smallest it has ever been and we believe that it will not be long before Asos has a greater market value than M&S. It will be a seminal moment.”
Sales at Asos were £1.4bn for the year to 31 August, while profits were £42.8m. At M&S sales reached £10.6bn with profits of £176m in 2016.
Mike Lewis, head of the property litigation team at SA Law, said the power of online retailing is changing the UK high street.
“The demise of BHS, and the empty stores in places such as St Albans one year on, reflect that finding tenants for such sizeable units that the likes of M&S occupy is not an easy exercise. M&S will no doubt be even more robust with landlords moving forward.”