AGM Statement

MARKS AND SPENCER PLC
15 July 1999

                      ANNUAL GENERAL MEETING
                          15 JULY 1999

The  following  statement on UK trading  is  extracted  from
the remarks  to  be  made to shareholders at today's  Annual
General Meeting.

Current UK trading

For the first 15 weeks of the current financial year total
sales declined by 6.1% (-9.6% like-for-like*).  This is
analysed between general merchandise, where sales were 9.3%
lower than last year (-12.9% like-for-like*) and foods, 
-1.0% (-3.4% like-for-like*).  Set against the strong April
and May performance last year, this performance was broadly
in line with our expectations, although trading in June was
disappointing.  The buying behind the summer clothing ranges
was cautious and this has led, in some cases, to problems of
availability which contributed to the poor performance in
June.

There will be less reduced merchandise compared to last year
and our overall stock position is lower than a year ago.  By
sourcing goods more competitively, customers will benefit
from values this autumn 5% better than last year.  In
addition, we have achieved a higher margin which will be
invested in better service.

The  first  quarter represents only a fifth of  the  full
year's profit,  with  one  third  of  the first  half
profit  typically generated  in  September,  when  our
autumn  ranges  are   first available in the stores.

*  Like-for-like sales have been calculated by comparing
total sales with new and developed stores excluded, and
sales deflected from existing stores added back

Looking ahead

The changes we are making are as a result of customer
feedback and were not expected to have had material effect
this spring, but we are encouraged by the response to
previews of our autumn clothing ranges.  This merchandise
reflects only some of the changes made in our buying
structures and processes, and further progress will be seen
in next year's spring ranges.

We have put in place a significant programme of change and
development so far this year, but fundamental change of this
nature in a company the size of M&S cannot happen overnight.
Our customers will start to see the impact early in the
autumn, and the following initiatives support that view.

Clothing

Our  objective  is  to provide fresh, new ideas and
consistently improved value.

There  will be more classic, stylish merchandise which,
together with  more  contemporary designs, is what our
customers  tell  us they are looking for.  We will display
collections of clothes  to reflect  the  range of our
customers' lifestyles, presenting  coordinated outfits
alongside individual items.

Foods

We will re-inforce our reputation for innovation.

We  are  also determined to reaffirm our position as the
leading retailer  of  speciality food of the highest quality
and  safety. Customers  will  see  new  ranges of innovative
food,  more  new products, more often and in greater depth.

Stores and service

There  will  also  be  a major change in the  appearance  of
the stores.

125 of them, including the majority in the high street, are
being refurbished  to  give  a new and exciting
presentation  for  the autumn  merchandise.  We are also
making a significant investment in  service.  We will have
2000 more staff on our sales floor and plan  to  free staff
from administrative tasks to allow  them  to focus on our
customers.  We want to set even higher standards  of service
and  we  will be training and equipping  our  people  to
deliver them.

M&S Chairman, Brian Baldock added,

'Trading conditions have remained difficult in the first
part  of this  financial  year.   Markets  were  highly
competitive and 'discount  driven' and because of our performance last
autumn  we were  cautious  in our buying and thus struggled
to  satisfy  the full demand of the spring season.  It's
been a tough start but we still have the seasonally
important part of the year to come  and we  are  approaching
the  autumn  with  renewed  confidence  and vigour.'

Chief   Executive,  Peter  Salsbury,  summarised  the
company's priorities saying,

'As  we address the issues which will generate our future
growth, our  top  priority  has always been to recover
market  share  and improve  profitability in clothing. We
have taken  an  aggressive approach to autumn and winter.
Previews of the autumn range have already  received acclaim.
Values are much improved and  we  have redoubled our efforts
on quality across our product ranges. Our
customers are at the heart of our recovery plan.
Ultimately,  it is  all  about recovering customer
confidence and that is how  we will restore value to
shareholders.'

                        G. OAKLEY
                     Company Secretary