LONDON, United Kingdom — Marks & Spencer shares fell 1 percent on Monday and were languishing at the bottom of the FTSE 100 index on expectations the 135-year old retailer will be relegated from London's blue-chip stock market for the first time as part of the quarterly review.

Goldman Sachs reinstated its coverage of the stock with a "sell" rating, also hurting sentiment.

At 0833 GMT, shares were down 1 percent, lagging the index which was up 0.9 percent.

M&S shares, which have been part of the FTSE 100 since its inception in 1984, have lost about 40 percent of their value since January 2018 as the icon of the British high street has struggled with tough competition in both clothing and food, particularly online.

Losing FTSE 100 membership means it is no longer in funds that only track the index of Britain's top companies.

The review will be based on closing prices on Tuesday, with the results announced after the end of trading on Wednesday and going into effect on September 23.

It is ranked 112th in the FTSE 350 of large and mid-cap companies based on Friday's market capitalisation.

That would trigger an automatic booting out. In order to avoid constant changes to the index as a result of day-to-day price volatility, companies are only demoted when they drop below 110 in the ranking.

By Josephine Mason; editor: Louise Heavens.