Asos set to dethrone Marks & Spencer as the UK's fashion kings
Online retailer's value set to surpass that of high street giant, M&S
by Abi Moses on 31st August, 2017
In what has been described as a "seminal moment" for UK retail, high street giants, Marks & Spencer, are set to be overtaken as the fashion industry's most valuable company by its much younger rival, .
Despite being created just 17 years ago, the online technology-focused, , are currently valued at £4.98bn, just shy of the £5.08bn valuation of 113-year old Marks & Spencer. Analysts believe it is now a matter of when and not if can bridge the £100m valuation difference and surpass M&S.
Mark , 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 has a greater market value than M&S. It will be a seminal moment.
was created in 2000 and floated on the stock exchange a year later with an initial market value of £14m. Now, sixteen years later its market value has risen in astronomical proportions. In the same period, Marks & Spencer's valuation has dipped from £7.8bn to its current level. In the days before online shopping, M&S' market value peaked at £16.9bn.
The problems Marks & Spencer are facing in trying to compete with its far younger, tech-savvy competitors is not unique to the fashion industry, with several examples across various sectors of new-age firms flourishing.
The value of grocery giants, Walmart, was surpassed by e-commerce giants, Amazon, back in 2015 and now the online retailer is worth twice as much as its older, more established rival. Similarly, after over 100 years in business, Ford Motor Company were displaced as the US' biggest car manufacturer in April by the new-age, electric car makers, Tesla.
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