Market report: M&S shares slip another 4pc to lowest closing price in 30 years

High street stalwart Marks & Spencersuffered its worst day of trading since June, as its share price continued to struggle following its fall into the FTSE 250 last month.

The retailer’s shares closed the day down 7.05p at 171.85p, a fall of almost 4pc. It has taken a beating since slipping into the mid-cap index a fortnight ago on Sept 23, with its price having slid about 15pc since it was relegated.

Its sharp exit from the FTSE 100 – of which it was a founding member – forced funds that track the blue-chip index to ditch its shares, pushing its share price to beneath mid-financial-crisis levels. Friday's closing price was its lowest since February 1989.

The fall followed a downgrade by analysts at HSBC, who said “green shoots of progress” in its food division were being offset by a lack of progress in its clothing and home arms – a dichotomy that has plagued its unstable management teams.

Noting the difficulties of creating a dynamic supply line, and dealing with competition, analysts wrote that M&S “has yet to develop a point of difference on product”, adding it “has fallen short of the ‘contemporary and wearable fashion’ aspirations key to accessing mainstream customers to which it aspires”.